Employees Not Liable to GST Penalty for company’s tax liabilities: SC dismisses Rs. 3731 crores demand notice

Union of India & Ors. Vs Shantanu Sanjay Hundekari & Anr. Etc. (Supreme Court of India)

The Supreme Court of India upheld a High Court ruling that employees and authorized signatories of a company cannot be held personally liable for penalties under Sections 122(1-A) and 137 of the Central Goods and Services Tax (CGST) Act. The case arose when the Revenue issued a show cause notice to an employee of Maersk, seeking recovery of ₹3,731 crores. The High Court quashed the notice, stating that the GST provisions do not impose vicarious liability on employees for a company’s

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