GST Demand Order issued Post-Resignation of Directors lie Against Company, Not Against Ex-directors: Patna HC

The Patna High Court ruled that a GST demand order issued after the resignation of directors lies against the company and not the ex-directors. The case involved a GST demand order issued to a company after its directors had resigned. The ex-directors challenged the order, arguing that they should not be held liable for the company’s tax obligations incurred after their resignation. The court agreed, stating that the liability for GST demands rests with the company and not with individuals who are no longer associated with it. This ruling clarifies the legal position regarding the responsibility for tax liabilities in cases where company directors have resigned and highlights the importance of proper corporate governance and compliance.