Section 93 says who pays when the person liable is no longer there in the same form: legal representatives on death, members on partition, partners on dissolution, and beneficiaries when a guardianship or trust ends.
Key points
- Under section 93(1) of the CGST Act, 2017, on the death of a person liable, a legal representative or other person continuing the business is liable for the dues; if the business is discontinued, the legal representative is liable out of the estate, to the extent the estate can meet it.
- On partition of an HUF or AOP, the members each member or group of members is jointly and severally liable for dues up to the partition (section 93(2)).
- On dissolution of a firm, every partner is jointly and severally liable for dues up to dissolution (section 93(3)); on termination of a guardianship or trust, the ward or beneficiary is liable (section 93(4)).
- Each rule is "save as otherwise provided in the Insolvency and Bankruptcy Code, 2016".
The provisions
93(1)–(4)Liability on death, partition, dissolution and termination
Statutory text
(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a person, liable to pay tax, interest or penalty under this Act, dies, then-
(a) 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; and
(b) 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, whether such tax, interest or penalty has been determined before his death but has remained unpaid or is determined after his death.
(2) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a taxable person, liable to pay tax, interest or penalty under this Act, is a Hindu Undivided Family or an association of persons and the property of the Hindu Undivided Family or the association of persons is partitioned amongst the various members or groups of members, then, each member or group of members shall, jointly and severally, be liable to pay the tax, interest or penalty due from the taxable person under this 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.
(3) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a taxable person, liable to pay tax, interest or penalty under this Act, is a firm, and the 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 this 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.
(4) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016 (31 of 2016), where a taxable person liable to pay tax, interest or penalty under this Act,-
(a) is the guardian of a ward on whose behalf the business is carried on by the guardian; or
(b) 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.
*Enforced w.e.f. 1st July, 2017.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Are legal heirs liable for a deceased proprietor's GST?
- Under section 93(1) of the CGST Act, if the business is continued, the person continuing it is liable; if it is discontinued, the legal representative is liable only out of the estate.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
A legal representative's liability on discontinued business is limited to the estate; he is not personally liable beyond it. The liability arises "whether such tax, interest or penalty has been determined before" the event "but has remained unpaid or is determined after".