Authorised Signatories/Employees of Company not liable to GST Penalty u/s 122(1-A) and 137: Supreme Court in Maersk GST Fraud Case

The Supreme Court has ruled that employees and authorized signatories of a company are not liable to GST penalties under sections 122(1)(a) and 137 for GST fraud committed by the company. The ruling clarifies that individuals acting in their capacity as employees or authorized signatories are not personally liable for the company's tax liabilities in cases of fraud. This decision is a significant one for businesses, as it establishes the limits of liability for individuals associated with a company. It also reinforces the importance of corporate governance and accountability in preventing tax fraud.