Chapter XVI - Liability to pay in certain cases
Section 93
Section 93: Special provisions regarding liability in certain cases
Section 93 deals with GST liabilities after death, HUF/AOP partition, firm dissolution and termination of guardianship or trust, subject to the IBC saving.
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Need advice on Section 93?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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 (31 of 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.
Introduction
The section allocates pre-event GST dues when the original taxable person or business structure changes.
Key takeaways
Death and business continuation
A representative or other person continuing the deceased person’s business is liable for due GST. If discontinued, the legal representative pays from the estate only to the extent it can meet the charge.
Partition and dissolution
Members of a partitioned HUF/AOP and partners of a dissolved firm face the specified joint and several liability for pre-event dues.
Guardianship or trust end
The ward or beneficiary becomes liable for dues up to termination under the subsection’s conditions.
Insolvency saving
Each route is expressly subject to the Insolvency and Bankruptcy Code where it provides otherwise.
Death and business continuation
A representative or other person continuing the deceased person’s business is liable for due GST. If discontinued, the legal representative pays from the estate only to the extent it can meet the charge.
Partition and dissolution
Members of a partitioned HUF/AOP and partners of a dissolved firm face the specified joint and several liability for pre-event dues.
Guardianship or trust end
The ward or beneficiary becomes liable for dues up to termination under the subsection’s conditions.
Insolvency saving
Each route is expressly subject to the Insolvency and Bankruptcy Code where it provides otherwise.
Practical checklist
Do
- Identify the event date and affected GST periods.
- Document estate, partition or dissolution assets and records.
- Apply the correct statutory liability route and IBC exception.
Avoid
- Assume a private contract, merger date or restructuring automatically removes statutory GST liability.
Frequently asked questions
Can a legal representative of a discontinued business owe more than the estate can pay?
Section 93(1)(b) limits that liability to the estate’s capacity to meet the charge.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026