Page 8 - Chap19 Liability to pay certain cases

08. Section 92:- Liability of Court of Wards, etc.

CCP.19.08.09.00
What happens to the GST liability when the estate of a taxable person is under the control of Court
of Wards? [Study mat]
Answer :-
As per section 92 of CGST Act, if the estate of a taxable person owning a business in respect of which

any tax, interest or penalty is payable under GST Acts is under the control of the Court of Wards/
Administrator General/ Official Trustee/ Receiver or Manager appointed by or under any order of a
Court,
Ø the tax, interest or penalty shall be levied upon and recoverable from such Court of Wards/

Administrator General/ Official Trustee/ Receiver or Manager in like manner & to the same extent
as it would be determined and recoverable from a taxable person as if he was conducting the
business himself.

09. Section 93:- Special Provisions regarding liability to pay tax, interest or
penalty in certain cases
CCP.19.09.10.00

1. Discuss the liability to pay tax, interest or penalty on death of a person liable to pay tax, interest
or penalty as per the provisions of section 93(1). [Study mat] [CA Final Nov 23 Exam] OR
2. A person, liable to pay GST, interest and penalty under GST law, dies. Determine the person
liable to pay the GST, interest and penalty due from such person under GST law determined

after his death if the business carried on by such person is continued after his death by his legal
representative. [Study Mat]
3. Would your answer be different if the business carried on by the person who has died, is
discontinued after his death. [Study Mat]

Answer:-
As per section 93(1), Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, if a person,
liable to pay tax, interest or penalty under CGST Act, dies, then:-
(a) Business is continued after his death:-

Ü If business carried on by such person is continued after his death by his legal representative or any
other person, such legal representative or other person shall be liable to pay tax, interest or penalty
due from such person under GST.

(b) Business is discontinued after his death:-
Ü If business carried on by such person is discontinued, whether before or after his death, his legal
representative shall be liable to pay tax, interest or penalty due from such person under GST out of
the estate of the deceased and to the extent to which the estate is capable of meeting the charge.
Ü This provision applies irrespective of the fact whether such tax, interest or penalty has been

determined before his death but has remained unpaid or is determined after his death.
Ü The successor shall be liable to pay any tax, interest or any penalty due from the transferor in cases
of transfer of business due to death of sole proprietor.

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