Section 93 of CGST Act, 2017 : Section 93: Special Provisions Regarding Liability To Pay Tax, Interest Or Penalty In Certain Cases

Explanation using Example

Example:

Mr. Sharma, who owned a textile business, unfortunately passed away. His son, Mr. Raj, decides to continue running the business. According to Section 93(1)(a) of the CGST Act, 2017, Mr. Raj, as the legal representative, is now responsible for paying any GST, interest, or penalties that were due from Mr. Sharma's business up until the time of his death. This includes liabilities that were determined before Mr. Sharma's death but remained unpaid, as well as any liabilities determined after his death.

If Mr. Sharma's business was discontinued upon his death, his legal representative (e.g., his appointed executor) would be responsible for settling any outstanding GST dues from the estate of the deceased, as per Section 93(1)(b), but only to the extent that the estate has sufficient funds to cover these liabilities.