CGST Act, 2017 - Chapter XVI

Section 93 of CGST Act: Special provisions regarding liability to pay tax, interest or penalty in certain cases

Section 93 of the Central Goods and Services Tax Act, 2017 deals with who becomes responsible for GST tax, interest or penalty when specified changes occur, including the death of a person, partition of a Hindu Undivided Family or association of persons, dissolution of a firm, or termination of a guardianship or trust.

Updated: 15 September 2026

Key point: Section 93 preserves specified GST liabilities despite death, partition, dissolution or termination. Each sub-section is expressly subject to the Insolvency and Bankruptcy Code, 2016.

Meaning and scope of Section 93

Chapter XVI of the CGST Act contains provisions identifying the person from whom GST dues may be recovered in special situations. Section 93 addresses four situations. The liability may cover tax, interest and penalty that was already determined and remained unpaid, as well as an amount determined after the relevant event, subject to the wording of the applicable sub-section.

The opening words, "Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016", make the operation of Section 93 subject to contrary provisions of the Insolvency and Bankruptcy Code, 2016. For the current statutory text, readers should also verify the official India Code and CBIC GST portals.

Section 93 - statutory provision

(1) Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, where a person, liable to pay tax, interest or penalty under this Act, dies, then-

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
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, 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, 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 up to 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.

Section 93 explained by situation

Event	Person made liable	Extent of liability under Section 93
Death and business continues	Legal representative or other person continuing the business	Tax, interest or penalty due from the deceased under the Act.
Death and business discontinued	Legal representative	Payable out of the deceased's estate, limited to the extent the estate can meet the charge.
Partition of HUF or AOP property	Each member or group of members	Joint and several liability for dues up to the time of partition.
Dissolution of firm	Every person who was a partner	Joint and several liability for dues of the firm up to the time of dissolution.
Termination of guardianship or trust	Ward or beneficiary	Liability for dues up to termination of the guardianship or trust.

Liability after death of a person

Section 93(1) distinguishes between continuation and discontinuance of the deceased person's business. If the business continues, the legal representative or other person continuing it becomes liable for the dues described in the provision. If the business is discontinued, the legal representative's liability is tied to the deceased's estate and is limited to the extent to which that estate can meet the charge.

Partition of HUF or association of persons

Under Section 93(2), when the property of a taxable HUF or association of persons is partitioned, each member or group of members is jointly and severally liable for tax, interest or penalty due up to the time of partition. The provision applies whether the amount was determined before partition and remained unpaid or is determined after partition.

Dissolution of a firm

Section 93(3) provides that every person who was a partner is jointly and severally liable for tax, interest or penalty due from the firm up to the time of dissolution. The liability is not avoided merely because the amount is determined after dissolution.

Termination of guardianship or trust

Section 93(4) applies where business was carried on by a guardian for a ward or by a trustee for a beneficiary. On termination of the guardianship or trust, the ward or beneficiary becomes liable for the tax, interest or penalty due up to the time of termination, including an amount determined thereafter as contemplated by the provision.

Important legal terms

Taxable person: Section 2(107) of the CGST Act defines a taxable person as a person who is registered or liable to be registered under Section 22 or Section 24. Person: Section 2(84) is an inclusive definition covering, among others, an individual, HUF, company, firm, LLP, association of persons or body of individuals, trust and other specified entities. These definitions should be read with the particular wording of Section 93.

Practical note: Section 93 determines who may bear specified GST liabilities in the listed circumstances. The existence and amount of the underlying demand must still arise under the applicable provisions of the CGST Act and rules, and the effect of the Insolvency and Bankruptcy Code, 2016 must be considered where relevant.

Related provisions

For connected liability provisions, see Section 90 - Liability of partners of firm to pay tax, Section 91 - Liability of guardians, trustees, etc., Section 92 - Liability of Court of Wards, etc., and Section 94 - Liability in other cases.