Section 93 SPECIAL PROVISIONS REGARDING LIABILITY TO PAY TAX, INTEREST OR PENALTY IN CERTAIN CASES [SECTION 93 OF THE CGST ACT] - GST Ready Reckoner - GST

SPECIAL PROVISIONS REGARDING LIABILITY TO PAY TAX, INTEREST OR PENALTY IN CERTAIN CASES [SECTION 93 OF THE CGST ACT] Special provision regarding liability to pay tax, interest or penalty in certain cases have been discussed as under: On death of a person liable to pay tax, interest or penalty [Section 93(1)] : where a person, liable to pay tax, interest or penalty under CGST Act, dies , then: In case business is continued after his death if a business carried on by the 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 this Act In Case business is discontinued after his death ​​​​​​​ if the business carried on by the person is discontinued, whether before or after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person under this Act 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. On partition of HUF or AOP [ Section 93(2) ] : where a taxable person, liable to pay tax, interest or penalty under CGST Act, is a Hindu Undivided Family (HUF) or an association of persons (AOP) and property of the HUF or AOP is partitioned amongst the various members or groups of members, then, each member/group of members shall, jointly and severally, be liable to pay the tax, interest or penalty due from the taxable person under said Act. up to the time of the partition whether such tax, penalty or interest has been determined before partition but has remained unpaid or is determined after the partition. On dissolution of a firm [ Section 93(3) ]: where a taxable person, liable to pay tax, interest or penalty under CGST Act, is a firm, and such firm is dissolved, then, every person who was a partner shall, jointly and severally, be liable to pay the tax, interest or penalty due from the firm under said Act up to the time of dissolution whether such tax, interest or penalty has been determined before the dissolution, but has remained unpaid or is determined after dissolution On termination of guardianship or trust [ Section 93(4) ]: where a taxable person liable to pay tax, interest or penalty under this Act, is the guardian of a ward on whose behalf the business is carried on by the guardian; or is a trustee who carries on the business under a trust for a beneficiary, then, if the guardianship or trust is terminated, the ward or the beneficiary shall be liable to pay the tax, interest or penalty due from the taxable person upto the time of the termination of the guardianship or trust, whether such tax, interest or penalty has been determined before the termination of guardianship or trust but has remained unpaid or is determined thereafter.