Section 91 of CGST Act - Liability of Guardians, Trustees and Agents
Section 91 of the Central Goods and Services Tax Act, 2017 forms part of Chapter XVI, which deals with liability to pay GST in certain cases. It fixes the manner in which tax, interest or penalty is levied and recovered when a business is carried on for the benefit of a minor or another incapacitated person.
Updated: 15 September 2026
Statutory provision - Section 91
Where the business in respect of which any tax, interest or penalty is payable under this Act is carried on by any guardian, trustee or agent of a minor or other incapacitated person on behalf of and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent in like manner and to the same extent as it would be determined and recoverable from any such minor or other incapacitated person, as if he were a major or capacitated person and as if he were conducting the business himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly.
Meaning and scope of Section 91
The provision addresses a situation in which the person for whose benefit the business is carried on is a minor or is otherwise incapacitated and therefore does not personally conduct the business. If a guardian, trustee or agent conducts that business on the person's behalf and for that person's benefit, Section 91 places the statutory GST liability on the guardian, trustee or agent for purposes of levy and recovery.
The section does not create a separate rate of tax or a separate taxable event. Instead, it identifies the person against whom tax, interest or penalty connected with the business may be determined and recovered. The liability is applied in the same manner and to the same extent as it would apply if the minor were a major, or the incapacitated person were capacitated, and were carrying on the business personally.
Who is covered?
| Person | Role under Section 91 |
|---|---|
| Guardian | Carries on business on behalf of and for the benefit of a minor or other incapacitated person. |
| Trustee | Carries on the relevant business in a representative or fiduciary capacity for the protected person. |
| Agent | Carries on the business on behalf of and for the benefit of the minor or incapacitated person. |
| Minor or other incapacitated person | The person for whose benefit the business is carried on and whose hypothetical personal liability determines the extent of liability under Section 91. |
Conditions for applying Section 91
- There must be a business in respect of which tax, interest or penalty is payable under the CGST Act.
- The business must be carried on by a guardian, trustee or agent.
- It must be carried on on behalf of and for the benefit of a minor or another incapacitated person.
- The tax, interest or penalty is then levied upon and recoverable from the guardian, trustee or agent in the manner prescribed by Section 91.
- The other provisions of the CGST Act and the rules apply accordingly.
Practical effect
Section 91 prevents a GST liability relating to a business from becoming unenforceable merely because the beneficial person is a minor or is incapacitated. For GST administration, the guardian, trustee or agent carrying on the business becomes the person from whom the relevant statutory dues may be levied and recovered, subject to the limits stated in the section.
Related provisions in Chapter XVI
Chapter XVI of the CGST Act contains special rules allocating liability in particular legal or representative situations. Closely related provisions include Section 90 - Liability of partners of firm to pay tax, Section 92 - Liability of Court of Wards, etc., Section 93 - Special provisions regarding liability to pay tax, interest or penalty in certain cases, and Section 94 - Liability in other cases.
Official references
For the statutory text and subsequent legislative updates, refer to the CBIC GST Acts portal and the India Code portal. Official sources should be checked for amendments, notifications and current legal position before acting on a specific matter.