Section 86 of CGST Act 2017: Liability of Agent and Principal
Provisions under Section 86 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Liability of Agent and Principal”, are as under:
Section 86 of CGST Act 2017: Liability of Agent and Principal (CHAPTER XVI – LIABILITY TO PAY IN CERTAIN CASES)
Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and his principal shall, jointly and severally, be liable to pay the tax payable on such goods under this Act.
The Central Goods and Services Tax (CGST) Act, 2017 was notified by Govt. of India on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. Further, CBIC has separately notified the commencement date of provisions of various Sections of the CGST (Amendment) Act 2018 vide Notification No. 2/2019 Central Tax dt. 29 Jan. 2019, except for sections where the date of commencement is different from 1 Feb. 2019 and has specifically been mentioned in the CGST Amendment Act, 2018 itself.