Section 92 of the Central Goods and Services Tax Act, 2017 deals with the liability to pay GST when the estate of a taxable person who owns a business is under the control of a Court of Wards, Administrator General, Official Trustee, receiver or manager appointed by or under an order of a court.
The provision ensures that a business does not escape its GST obligations merely because its estate or business is being managed by another person or authority under a legal arrangement or court order.
Where the conditions of Section 92 are satisfied, the applicable tax, interest or penalty is levied upon and recoverable from the Court of Wards, Administrator General, Official Trustee, receiver or manager. The amount is determined and recovered in the same manner and to the same extent as it would have been determined and recovered from the taxable person if that person were conducting the business himself. The remaining provisions of the CGST Act and the Rules also apply accordingly.
Section 92 is part of Chapter XVI of the CGST Act, which contains provisions dealing with liability to pay tax in special circumstances. It follows Section 91, which deals with guardians, trustees and agents of minors or incapacitated persons, and precedes Section 93, which contains special provisions for situations such as death, partition, dissolution and termination of guardianship or trust.
What Is Section 92 of the CGST Act?
Section 92 is titled “Liability of Court of Wards, etc.”
The provision applies where:
- a taxable person owns a business;
- tax, interest or penalty is payable in respect of that business;
- the estate or a portion of the estate of the taxable person is under specified legal control; and
- the business is controlled by a Court of Wards, Administrator General, Official Trustee, receiver or manager appointed by or under an order of a court.
In such a situation, the tax, interest or penalty is levied upon and recovered from the person or authority controlling the estate or business in the manner specified by Section 92.
The provision therefore addresses situations where the taxable person’s business continues but its management has been placed in the hands of another legally recognised person or authority.
Textual Principle of Section 92
The central principle of Section 92 is that when the estate or part of the estate of a taxable person owning a business is under the control of a specified authority, receiver or manager, the GST liability is dealt with through that person or authority.
The provision specifically mentions:
- Court of Wards
- Administrator General
- Official Trustee
- Receiver
- Manager
The receiver or manager category is particularly broad because Section 92 includes any person, whatever be his designation, who in fact manages the business, provided that person is appointed by or under an order of a court.
Why Is Section 92 Necessary?
A business may continue even when its owner is no longer directly controlling its estate or business affairs.
For example, a court may appoint a receiver to manage the business or property of a taxable person.
Similarly, an estate may come under the control of a legally recognised authority such as a Court of Wards or Official Trustee.
If the person who originally owned the business is not managing it directly, there still needs to be a mechanism through which GST obligations can be administered.
Section 92 addresses this situation.
It does not create an exemption from GST. Instead, it identifies the person or authority from whom the relevant tax, interest and penalty can be levied and recovered while the estate or business remains under the specified control.
Who Is Covered by Section 92?
Section 92 specifically identifies five categories.
1. Court of Wards
A Court of Wards is a statutory mechanism under applicable law through which the property or estate of a person requiring legal protection or supervision may be administered.
Where the estate of a taxable person owning a business comes under the control of a Court of Wards, Section 92 can apply.
2. Administrator General
The Administrator General may administer estates in circumstances provided under the applicable law.
Where the estate of a taxable person owning a business is under the control of the Administrator General, Section 92 provides for the GST liability associated with that business to be levied and recovered from the Administrator General.
3. Official Trustee
An Official Trustee may hold or administer property in circumstances provided under law.
Where the relevant estate of a taxable person owning a business is under the control of the Official Trustee, Section 92 can apply.
4. Receiver
A receiver appointed by or under an order of a court may take control of property or business assets.
Where the conditions of Section 92 are satisfied, the receiver becomes the person from whom the relevant tax, interest or penalty is levied and recovered.
5. Manager
Section 92 also covers a manager appointed by or under an order of a court.
Importantly, the provision does not restrict this category merely to someone formally described as a “manager.” It expressly includes a person whatever be his designation, who in fact manages the business, where the person is appointed by or under an order of a court.
When Does Section 92 Apply?
Section 92 requires several conditions to be satisfied.
Condition 1 – There must be a taxable person
The provision starts with the estate of a taxable person.
Condition 2 – The taxable person must own a business
The taxable person must own a business in respect of which the relevant tax, interest or penalty is payable.
Condition 3 – GST liability must exist
The business must have a liability for:
- tax;
- interest; or
- penalty
under the CGST Act.
Condition 4 – Estate or part of estate must be under specified control
The estate or a portion of the estate must be under the control of one of the persons or authorities specified in Section 92.
Condition 5 – Relevant authority or person must fall within the statutory categories
The person controlling the estate must be:
- Court of Wards;
- Administrator General;
- Official Trustee;
- receiver; or
- manager appointed by or under an order of a court.
When these conditions are satisfied, Section 92 provides the mechanism for levying and recovering the GST liability.
What Does “Estate” Mean in Section 92?
The term estate is important because Section 92 does not require the entire estate to be under control.
The provision expressly covers:
“the estate or any portion of the estate”
of the taxable person.
Therefore, Section 92 can operate even where only a portion of the person’s estate is under the specified control.
The exact legal scope of the estate and the extent of the control would depend on the relevant legal arrangement or court order.
What Does “Portion of the Estate” Mean?
Suppose a taxable person owns several properties and a business.
A court order may place only a particular property or business-related portion of the estate under the control of a receiver.
Section 92 is not restricted only to circumstances where the entire estate is placed under control.
The statutory wording expressly includes any portion of the estate.
This makes the provision flexible enough to cover situations where the court-controlled property represents only part of the taxable person’s overall estate.
What Is the GST Liability Covered by Section 92?
Section 92 specifically covers:
Tax
The GST tax payable under the CGST Act in respect of the business.
Interest
Interest payable under the GST law is also covered.
Penalty
Where a penalty is legally payable under the CGST Act, Section 92 includes it within the statutory liability.
Therefore, the provision is not limited to the basic tax amount.
How Is the Liability Determined?
Section 92 uses a specific statutory comparison.
The tax, interest or penalty is levied upon and recovered from the Court of Wards, Administrator General, Official Trustee, receiver or manager:
- in the same manner; and
- to the same extent
as it would be determined and recovered from the taxable person as if the taxable person were conducting the business himself.
This is an important feature of the provision.
Section 92 does not create a separate GST rate merely because a receiver or other authority is managing the business.
The underlying GST liability is determined according to the normal GST provisions applicable to the business.
Section 92 Does Not Create a Separate GST Rate
Suppose a taxable person’s business is being managed by a court-appointed receiver.
The fact that a receiver is operating the business does not by itself change:
- the applicable GST rate;
- taxable value;
- input tax credit rules;
- invoice requirements;
- return requirements; or
- other substantive GST provisions.
Section 92 primarily provides the mechanism for levying and recovering the applicable GST liability through the person or authority controlling the estate or business.
Example of a Court-Appointed Receiver
Suppose Mr. A owns a taxable manufacturing business.
The business is registered under GST and regularly makes taxable supplies.
Due to a legal dispute, a court appoints a receiver to take control of the relevant business and assets.
The receiver begins managing the business.
The business continues making taxable supplies and becomes liable to GST.
Under Section 92, where the statutory conditions are satisfied, the tax, interest or penalty relating to the business can be levied upon and recovered from the receiver in the same manner and to the same extent as it would have been from Mr. A if he were conducting the business himself.
The appointment of the receiver therefore does not eliminate the GST obligations associated with the business.
Example of a Manager Appointed by Court
Consider another example.
A taxable person owns a commercial business.
A court appoints a manager to operate the business.
The manager is not necessarily called a “GST manager” or “tax manager.” The manager’s legal authority comes from the court order.
The business continues making taxable supplies.
Under Section 92, the relevant tax, interest or penalty can be levied upon and recovered from the manager where the statutory conditions are satisfied.
The important point is that Section 92 looks at the person’s actual management of the business and the court appointment, rather than merely relying on the person’s job title.
Why Does Section 92 Mention “Whatever Be His Designation”?
This wording prevents the provision from being avoided simply by giving a person a different title.
For example, a court may appoint someone to manage a business but describe that person as:
- administrator;
- special manager;
- authorised representative;
- estate manager; or
- another designation.
If the person is in fact managing the business and is appointed by or under a court order, Section 92 can cover that person if the other statutory conditions are satisfied.
Therefore, the substance of the appointment and actual management is important.
Role of the Court Order
The court order is an important element in the receiver or manager portion of Section 92.
The provision refers to a receiver or manager:
appointed by or under any order of a court.
Therefore, an ordinary private appointment of a manager does not automatically bring the person within Section 92 merely because the person manages the business.
The statutory requirement concerning appointment by or under a court order must be considered.
Section 92 and GST Registration
Section 92 does not itself provide a separate GST registration procedure.
The business remains subject to the applicable registration provisions of the CGST Act.
Where management of a registered business changes because of a court order, the person responsible for managing the business should examine the applicable GST registration and amendment requirements.
The appropriate treatment can depend on the legal status of the taxable person, the nature of the court order and the manner in which the business continues.
Section 92 should therefore not be treated as a substitute for the registration provisions under Chapter VI.
Section 92 and GST Returns
The business does not stop having GST compliance obligations merely because its estate or business comes under court-appointed management.
The applicable provisions concerning returns continue to operate.
Depending on the circumstances, the person managing the business may need to ensure that:
- outward supplies are correctly reported;
- input tax credit is properly accounted for;
- GST liabilities are calculated;
- tax is paid;
- returns are filed; and
- notices or other communications from the GST authorities are appropriately handled.
Section 92 expressly provides that all provisions of the CGST Act and the Rules made thereunder shall apply accordingly.
Section 92 and Input Tax Credit
Section 92 does not create a special input tax credit regime.
If the business is eligible for ITC, the normal conditions and restrictions under the CGST Act and Rules continue to apply.
The person managing the business should therefore maintain:
- valid tax invoices;
- purchase records;
- receipt records;
- supplier details;
- payment records;
- ITC reconciliation; and
- other prescribed documents.
The court-appointed manager or receiver should not assume that the appointment itself creates automatic entitlement to every credit appearing in the business records.
ITC remains governed by the substantive GST provisions.
Section 92 and Interest
Where the business fails to discharge a GST liability within the applicable period and interest becomes payable, Section 92 covers that interest as part of the tax, interest and penalty framework.
Therefore, court-appointed management does not by itself stop the accrual or applicability of GST interest where the substantive conditions for interest are satisfied.
The person responsible for managing the business should monitor GST payment obligations carefully.
👉 Read More → Section 91 – Liability of guardians, trustees, etc.
Section 92 and Penalty
Section 92 also includes penalty.
However, Section 92 itself does not independently create a penalty for every act.
A penalty must arise under the applicable substantive provision of the CGST Act.
Once a tax, interest or penalty liability exists within the scope of Section 92, the provision determines the manner in which that liability is to be levied and recovered from the specified person or authority.
Does Section 92 Transfer Ownership of the Business?
No.
Section 92 does not state that the Court of Wards, Administrator General, Official Trustee, receiver or manager becomes the owner of the business.
The provision is concerned with the control and management of the estate or business and the corresponding GST liability.
Ownership continues to be determined under the applicable property, court, trust, insolvency or other legal framework.
The GST Act simply provides the mechanism for dealing with tax, interest and penalty while the specified person or authority controls the estate or business.
Section 92 and a Receiver
A receiver is generally appointed to take control or custody of property or business assets under a legal process.
Where the receiver is appointed by or under an order of a court and controls the relevant business, Section 92 may apply.
For GST purposes, the receiver should carefully examine the scope of the court order and the business activities under the receiver’s control.
For example, if the receiver is authorised to operate the business, the receiver may have to deal with GST compliance connected with those business operations.
Section 92 and an Official Trustee
The Official Trustee is specifically named in Section 92.
Where the estate or a portion of the estate of a taxable person owning a business is under the control of the Official Trustee, the relevant GST tax, interest or penalty can be levied upon and recovered from the Official Trustee according to the mechanism provided by Section 92.
The Official Trustee’s involvement therefore does not remove the GST liability connected with the business.
Section 92 and Administrator General
The Administrator General is also specifically included.
Where the relevant estate or portion of the estate is under the Administrator General’s control and the statutory conditions are satisfied, the GST liability is handled under Section 92.
The tax, interest or penalty is determined and recovered as though the taxable person were conducting the business himself.
Section 92 and Court of Wards
The Court of Wards is expressly mentioned in Section 92.
Where the estate or part of the estate of a taxable person owning a business is under its control, Section 92 provides that the relevant GST liability is levied upon and recoverable from the Court of Wards in the prescribed statutory manner.
The provision therefore ensures continuity of GST administration even where the taxable person’s estate is under institutional control.
Section 92 vs Section 91
Section 91 and Section 92 are adjacent provisions, but they deal with different circumstances.
Section 91
Section 91 applies where a business is carried on by a:
- guardian;
- trustee; or
- agent
of a minor or other incapacitated person, on behalf of and for the benefit of that person.
Section 92
Section 92 applies where the estate or part of the estate of a taxable person owning a business is under the control of:
- Court of Wards;
- Administrator General;
- Official Trustee;
- receiver; or
- manager appointed by or under a court order.
The two provisions therefore address different forms of representative or court-controlled management.
| Point | Section 91 | Section 92 |
|---|---|---|
| Main subject | Guardians, trustees and agents | Court of Wards, Administrator General, Official Trustee, receiver and manager |
| Person whose business is involved | Minor or incapacitated person | Taxable person owning a business |
| Nature of control | Business carried on on behalf of and for benefit of minor/incapacitated person | Estate or part of estate under specified control |
| Court appointment required | Not stated as a condition | Required for receiver/manager category |
| Tax, interest and penalty | Covered | Covered |
| Normal GST provisions | Apply accordingly | Apply accordingly |
Section 92 vs Section 90
Section 90 deals with the liability of partners of a firm.
Under Section 90, where a firm is liable to pay tax, interest or penalty, the firm and each partner are jointly and severally liable.
Section 92 is different because it is concerned with the control of a taxable person’s estate or business by specified authorities or court-appointed persons.
| Point | Section 90 | Section 92 |
|---|---|---|
| Main subject | Partners of a firm | Court-controlled estate/business |
| Persons liable | Firm and partners | Court of Wards, Administrator General, Official Trustee, receiver or manager |
| Joint and several wording | Yes | No such wording in Section 92 |
| Court appointment | Not required | Relevant for receiver/manager |
| Retirement provision | Yes | No |
Section 92 vs Section 88
Section 88 deals with a company in liquidation.
It specifically requires the liquidator to inform the Commissioner about the appointment and provides a mechanism for identifying the amount sufficient to provide for tax, interest and penalty payable or likely to become payable by the company. Section 88 also contains a special provision concerning directors of a private company in liquidation.
Section 92 does not specifically deal with company liquidation.
Instead, it covers a taxable person’s estate or part of an estate that is under the control of specified authorities or court-appointed receivers or managers.
| Point | Section 88 | Section 92 |
|---|---|---|
| Main situation | Company being wound up | Estate/business under specified control |
| Liquidator | Specifically covered | Not the main subject |
| Receiver/manager | Receiver of company assets is treated as liquidator under Section 88 | Receiver/manager appointed by or under court order can be covered |
| Director liability | Special provision for private company | No director provision |
| Commissioner notification | Specifically prescribed in Section 88 | No equivalent time-bound intimation in Section 92 |
Section 92 vs Section 93
Section 93 deals with special cases involving changes in the status or circumstances of a taxable person, including:
- death;
- partition of an HUF or association of persons;
- dissolution of a firm; and
- termination of guardianship or trust.
For example, Section 93(1) addresses the liability after the death of a taxable person, while Section 93(3) addresses dissolution of a firm. Section 93(4) deals with termination of guardianship or a trust.
Section 92, by contrast, operates while the specified authority, receiver or manager controls the estate or business.
Practical Example: Court-Appointed Manager
Suppose ABC Traders is owned by a taxable person.
A court passes an order appointing Mr. X as manager to operate the business.
Mr. X takes control of the business and continues its taxable operations.
During the period of management, the business has:
- taxable outward supplies;
- GST liability;
- applicable interest on delayed payment; and
- a penalty imposed under the applicable GST provisions.
Where Section 92 applies, the tax, interest and penalty can be levied upon and recovered from Mr. X as the court-appointed manager, in the same manner and to the same extent as they would have been determined and recovered from the taxable person if the taxable person were conducting the business himself.
The underlying GST rules applicable to the business continue to apply.
Practical Example: Receiver Managing Part of an Estate
Suppose Mr. B owns:
- a manufacturing business;
- residential property; and
- investment assets.
A court places the business and related assets under the control of a receiver.
The rest of Mr. B’s estate remains outside the receiver’s control.
Because Section 92 expressly refers to the estate or any portion of the estate, the provision can apply to the portion under the receiver’s control, subject to the statutory conditions.
The fact that the entire estate is not under the receiver’s control does not by itself prevent Section 92 from applying.
Practical Example: Business Continues Under Court Control
Suppose a taxable person’s business was already registered under GST before a court-appointed receiver took control.
The receiver continues the business rather than closing it.
The business continues making taxable supplies.
In this situation, the receiver should not assume that the court appointment suspends GST compliance.
The business continues to be subject to applicable GST provisions, while Section 92 provides the special mechanism for levying and recovering tax, interest and penalty from the receiver.
Does Section 92 Apply Only When the Entire Business Is Under Control?
No.
The statutory wording refers to the estate or any portion of the estate.
Therefore, the provision can apply even where only part of the estate is under the relevant control.
However, the exact liability must be examined according to the court order, the nature of the business, the property under control and the applicable GST provisions.
Does Section 92 Make the Receiver Personally the Owner of GST Liability?
Section 92 makes the specified person or authority the person from whom the relevant tax, interest or penalty is levied upon and recovered in the circumstances described by the section.
It does not state that the receiver becomes the owner of the underlying business.
The receiver’s legal position is determined by the applicable court order and other governing law.
Section 92 is a GST liability provision and should not be treated as a general property or ownership provision.
Practical GST Compliance Checklist Under Section 92
Where a business comes under the control of a Court of Wards, Administrator General, Official Trustee, receiver or court-appointed manager, the person responsible for management should review the following areas.
1. Examine the court order
Determine:
- who has been appointed;
- what property is under control;
- whether the business is included;
- the scope of the authority; and
- the effective date of the appointment.
2. Review GST registration
Check the GST registration status and determine whether any amendment or other compliance action is required.
👉 Read More → Section 93 – Special provisions regarding liability to pay tax, interest or penalty
3. Review outstanding GST liabilities
Identify:
- unpaid tax;
- interest;
- penalties;
- pending demands;
- pending assessments;
- notices; and
- ongoing investigations or proceedings.
4. Continue return compliance
Ensure applicable GST returns are filed correctly and on time.
5. Maintain business records
Preserve:
- invoices;
- books of account;
- purchase records;
- sales records;
- e-way bills;
- GST returns;
- payment records; and
- ITC documentation.
6. Monitor tax payments
GST collected or otherwise payable by the business should be properly accounted for and paid according to the applicable law.
7. Keep evidence of management
Maintain the court order and records demonstrating the authority under which the business is being managed.
Common Mistakes Under Section 92
Assuming court control eliminates GST liability
It does not. Section 92 specifically provides a mechanism for dealing with tax, interest and penalty when the estate or business is under specified control.
Assuming only the whole estate can be covered
The section expressly includes any portion of the estate.
Treating every private manager as covered
The receiver or manager category refers to a person appointed by or under an order of a court and, in the case of a manager, includes a person who in fact manages the business regardless of designation.
Assuming the court-appointed person becomes the owner
Section 92 deals with GST liability and recovery; it does not itself determine ownership.
Ignoring ordinary GST compliance
The section expressly states that all provisions of the CGST Act and Rules apply accordingly.
Key Features of Section 92
| Particular | Details |
|---|---|
| Section | 92 |
| Title | Liability of Court of Wards, etc. |
| Chapter | Chapter XVI – Liability to Pay in Certain Cases |
| Taxable person | Person owning the relevant business |
| Property covered | Entire estate or any portion of the estate |
| Business condition | Business in respect of which tax, interest or penalty is payable |
| Persons/authorities covered | Court of Wards, Administrator General, Official Trustee, receiver or manager |
| Receiver/manager appointment | By or under an order of a court |
| Manager definition | Includes a person who in fact manages the business, whatever the designation |
| Amounts covered | Tax, interest and penalty |
| Method of liability | Same manner and extent as applicable to taxable person |
| Other GST provisions | Apply accordingly |
Frequently Asked Questions About Section 92
Conclusion
Section 92 of the CGST Act provides a specific mechanism for dealing with GST liabilities when the estate or any portion of the estate of a taxable person owning a business is placed under the control of a Court of Wards, Administrator General, Official Trustee, receiver or court-appointed manager.
The provision covers tax, interest and penalty and provides that these amounts are levied upon and recoverable from the relevant authority, receiver or manager in the same manner and to the same extent as they would have been determined and recovered from the taxable person if that person were conducting the business himself.
Section 92 does not create an exemption from GST merely because a business comes under court-controlled management. The normal provisions of the CGST Act and Rules continue to apply accordingly. The provision is therefore particularly important for receivers, court-appointed managers and other persons or authorities who take control of a taxable business, because the change in management does not by itself remove the business’s GST compliance and payment obligations.
Section 92 should also be understood alongside Sections 91 and 93, which deal with other special circumstances involving guardians, trustees, death, dissolution, partition and termination of guardianship or trust.
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