Section 93 of the Central Goods and Services Tax Act, 2017 deals with special situations in which the person originally liable to pay GST tax, interest or penalty dies, an HUF or association of persons is partitioned, a partnership firm is dissolved, or guardianship or a trust is terminated.
The purpose of this provision is to ensure that GST liabilities do not disappear merely because the legal or organisational status of the taxable person changes.
Section 93 contains four separate situations:
- Death of a person liable to pay tax, interest or penalty.
- Partition of a Hindu Undivided Family (HUF) or association of persons.
- Dissolution of a partnership firm.
- Termination of guardianship or a trust.
The section also begins each applicable situation with the qualification “Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016”, meaning that the provisions of the Insolvency and Bankruptcy Code, 2016 can prevail where applicable. The current text of Section 93 is reflected in the CGST Act sources maintained by CBIC and India Code.
What Is Section 93 of the CGST Act?
Section 93 is titled “Special provisions regarding liability to pay tax, interest or penalty in certain cases.”
Unlike provisions that deal with ordinary GST payment, Section 93 focuses on situations where the person or entity originally responsible for GST undergoes a significant legal change.
The provision covers:
- death of a taxable person;
- continuation or discontinuation of business after death;
- partition of HUF or association of persons;
- dissolution of a firm; and
- termination of guardianship or trust.
The important principle is that a change in the status of the taxable person does not automatically extinguish GST liabilities that arose before that change.
Why Is Section 93 Important?
Businesses and taxable persons can undergo significant changes during their existence.
For example:
- a sole proprietor may die;
- an inherited business may continue under a legal representative;
- an HUF may be partitioned;
- a partnership firm may be dissolved;
- guardianship may terminate when a ward becomes capable of managing affairs; or
- a trust arrangement may come to an end.
In each of these situations, there may be GST liabilities relating to periods before the change.
Section 93 establishes who becomes responsible for those liabilities and, in certain cases, whether liability is limited to the estate or whether it is joint and several among the persons concerned.
Structure of Section 93
Section 93 has four main subsections:
| Subsection | Situation covered |
|---|---|
| Section 93(1) | Death of a person liable for GST |
| Section 93(2) | Partition of HUF or association of persons |
| Section 93(3) | Dissolution of a partnership firm |
| Section 93(4) | Termination of guardianship or trust |
Each subsection creates a different liability mechanism.
Section 93(1) – Liability After Death of a Taxable Person
Section 93(1) applies when a person who is liable to pay tax, interest or penalty under the CGST Act dies.
The provision then makes an important distinction based on what happens to the business after the person’s death.
There are two situations:
Situation 1 – Business continues after death
If the business is continued after the person’s death by:
- the legal representative; or
- any other person,
that legal representative or other person becomes liable to pay the tax, interest or penalty due from the deceased person under the CGST Act.
Situation 2 – Business is discontinued
If the business is discontinued, whether:
- before the death; or
- after the death,
the legal representative becomes liable to pay the tax, interest or penalty out of the estate of the deceased, to the extent that the estate is capable of meeting the liability.
This distinction is one of the most important parts of Section 93.
Death of a Sole Proprietor
Section 93 is particularly relevant to businesses operated by individuals.
Suppose Mr. A operates a proprietorship business registered under GST.
Mr. A dies while the business has:
- unpaid GST;
- interest liability; or
- a pending GST penalty.
The GST liability does not automatically disappear because the proprietor has died.
The treatment depends on whether the business continues.
If the Business Continues After Death
Suppose Mr. A dies on 31 March 2026.
His legal representative continues operating the business from 1 April 2026.
Under Section 93(1)(a), the legal representative becomes liable to pay the tax, interest or penalty due from Mr. A under the CGST Act.
The section therefore allows the business and its GST obligations to continue despite the death of the original taxable person.
Example
Suppose the deceased proprietor had:
- GST liability: ₹5 lakh
- Interest: ₹50,000
- Penalty: ₹1 lakh
If the business continues after his death through his legal representative, Section 93(1)(a) makes the legal representative liable for the relevant amounts under the Act.
The death of the proprietor does not eliminate the existing GST liability.
If the Business Is Discontinued
Section 93(1)(b) deals with a different situation.
If the business is discontinued, whether before or after the person’s death, the legal representative is liable to pay the tax, interest or penalty out of the estate of the deceased.
However, the liability is limited to the extent to which the estate is capable of meeting the charge.
This is an important distinction from the continuation scenario.
The section specifically connects the liability to the deceased person’s estate.
Example
Suppose a deceased proprietor leaves an estate worth ₹8 lakh.
The outstanding GST liability is ₹12 lakh.
If the business has been discontinued, Section 93(1)(b) provides for payment out of the deceased’s estate to the extent the estate is capable of meeting the charge.
Therefore, the provision does not simply state that the legal representative must pay an unlimited amount from personal assets.
What If GST Liability Is Determined After Death?
Section 93 expressly covers liabilities that are:
- determined before death but remained unpaid; or
- determined after death.
This is important because a GST demand does not necessarily have to be finally determined before the taxable person dies.
Example
Suppose a proprietor dies in June 2025.
A GST proceeding relating to FY 2024–25 is completed in December 2026 and results in additional tax liability.
The fact that the GST liability was determined after the proprietor’s death does not by itself prevent Section 93 from applying.
The relevant liability can still be dealt with under the section.
Death and Insolvency Proceedings
Section 93(1) begins with the words “Save as otherwise provided in the Insolvency and Bankruptcy Code, 2016.”
This qualification is important.
Where an insolvency proceeding governed by the IBC is applicable, the relevant provisions of the IBC must also be considered.
Therefore, Section 93 should not be read in isolation where an insolvency or bankruptcy proceeding is involved.
Section 93(2) – Partition of HUF or Association of Persons
Section 93(2) deals with another major change in legal or economic status.
It applies where a taxable person is:
- a Hindu Undivided Family (HUF); or
- an association of persons (AOP),
and the property of the HUF or AOP is partitioned among:
- various members; or
- groups of members.
In such a situation, each member or group of members becomes jointly and severally liable for the tax, interest or penalty due from the taxable person up to the time of partition.
What Is the Effect of Partition?
The important point is that partition does not automatically eliminate the GST liability of the HUF or AOP.
The GST liability existing up to the time of partition continues to be recoverable according to Section 93(2).
Example
Suppose an HUF operates a taxable business.
The HUF has GST liability relating to supplies made before partition.
On 31 March 2026, the HUF property is partitioned among three groups of members.
If ₹9 lakh of GST, interest and penalty is due up to the time of partition, Section 93(2) makes each member or group of members jointly and severally liable for the relevant liability.
Joint and Several Liability Under Section 93(2)
The phrase “jointly and severally liable” is important.
It means that the liability is not automatically divided into separate equal portions merely because the property has been partitioned.
Each member or group of members falls within the statutory liability for the relevant GST dues.
The actual recovery and rights among members may involve other applicable legal principles, but the CGST Act establishes the joint-and-several liability in relation to the GST dues covered by Section 93(2).
Tax Liability Determined After Partition
Section 93(2) specifically covers tax, interest or penalty that:
- was determined before partition but remained unpaid; or
- is determined after partition.
Therefore, partition does not prevent a later determination of GST liability for the period before partition.
Example
An HUF is partitioned on 30 June 2026.
A GST investigation later determines in December 2027 that additional tax was payable for supplies made before 30 June 2026.
The fact that the liability was determined after partition does not by itself remove the liability under Section 93(2).
The relevant issue is whether the liability was due up to the time of partition.
Section 93(3) – Dissolution of a Partnership Firm
Section 93(3) deals with the dissolution of a partnership firm.
Where:
- the taxable person is a firm;
- the firm is liable to pay tax, interest or penalty; and
- the firm is dissolved,
every person who was a partner becomes jointly and severally liable to pay the tax, interest or penalty due from the firm up to the time of dissolution.
This applies whether the relevant tax, interest or penalty:
- was determined before dissolution but remained unpaid; or
- is determined after dissolution.
Example of Dissolution of a Firm
Suppose ABC Traders is a partnership firm with three partners:
- Partner A
- Partner B
- Partner C
The firm has GST liability of ₹15 lakh relating to supplies made before dissolution.
The firm is dissolved on 31 March 2026.
Under Section 93(3), the partners are jointly and severally liable for the GST, interest and penalty due from the firm up to the time of dissolution.
GST Demand After Dissolution
A common misconception is that a GST demand cannot be raised after a firm has been dissolved.
Section 93(3) expressly addresses this possibility.
The provision states that the liability may still be determined after dissolution.
Therefore, dissolution of the firm does not by itself extinguish GST liabilities relating to the period before dissolution.
Section 90 vs Section 93(3)
Section 90 already deals with the general liability of partners of a firm.
Section 93(3) specifically addresses the dissolution of the firm.
Under Section 90, the firm and each partner are jointly and severally liable while the firm is liable under the Act.
Section 93(3) deals with what happens when the firm itself is dissolved and preserves liability for dues up to the time of dissolution.
| Point | Section 90 | Section 93(3) |
|---|---|---|
| Main subject | Liability of partners | Dissolution of firm |
| Firm status | General partnership liability | Firm dissolved |
| Persons liable | Firm and partners | Persons who were partners |
| Liability | Tax, interest, penalty | Tax, interest, penalty |
| Period | General statutory liability | Up to time of dissolution |
Section 93(4) – Termination of Guardianship or Trust
Section 93(4) deals with a special situation involving:
- a guardian of a ward; or
- a trustee carrying on business under a trust for a beneficiary.
It applies where the guardianship or trust is terminated.
After termination, the:
- ward; or
- beneficiary
becomes liable to pay the tax, interest or penalty due from the taxable person up to the time of termination.
The provision also covers amounts that:
- were determined before termination but remained unpaid; or
- are determined after termination.
Example of Termination of Guardianship
Suppose a guardian operates a taxable business on behalf of a minor ward.
The guardianship later comes to an end.
At the time of termination, the business has GST liability relating to the period during which the guardian operated the business.
Under Section 93(4), the ward becomes liable for the tax, interest or penalty due up to the time of termination, subject to the statutory framework.
Example of Termination of a Trust
Suppose a trustee operates a business under a trust for the benefit of a beneficiary.
The trust is later terminated.
There is an outstanding GST liability relating to the period up to the termination of the trust.
Section 93(4) provides that the beneficiary becomes liable for the relevant tax, interest or penalty due up to the time of termination.
The fact that the amount is determined after termination does not automatically remove the liability.
Important Principle: Liability Can Be Determined Later
One of the strongest common features of Section 93 is that it repeatedly recognises situations where tax, interest or penalty may be determined after the relevant legal event.
These events include:
- death;
- partition;
- dissolution; and
- termination of guardianship or trust.
Therefore, a person should not assume that a liability disappears merely because the GST department had not determined it before the business structure or legal relationship changed.
The relevant question is generally whether the liability relates to the period covered by the particular subsection.
Section 93 and Death of a Proprietor
The death of a sole proprietor is one of the most practical situations where Section 93 becomes relevant.
A proprietorship is closely connected with the individual proprietor.
When the proprietor dies, the business may either:
- continue under the legal representative or another person; or
- be discontinued.
Section 93(1) provides different consequences for these two situations.
If business continues
The legal representative or other person continuing the business becomes liable for the relevant tax, interest and penalty.
If business is discontinued
The legal representative is liable to pay out of the deceased’s estate, to the extent the estate can meet the charge.
This distinction is essential when handling the GST affairs of a deceased proprietor.
Section 93 and Legal Representatives
The expression legal representative becomes especially important under Section 93(1).
Where the business is discontinued, the legal representative’s liability is specifically connected to the estate of the deceased.
The section therefore distinguishes between:
- continuing the business; and
- merely dealing with the deceased person’s estate after discontinuation.
The exact legal status of a person as a legal representative can depend on the applicable succession and estate laws.
Section 93 and Estate of the Deceased
Where the business is discontinued, Section 93(1)(b) states that the legal representative is liable to pay the relevant tax, interest or penalty out of the estate of the deceased, and only to the extent to which the estate is capable of meeting the charge.
This is an important limitation.
It means that the statutory provision does not simply state that the legal representative must pay all of the deceased person’s GST liability from personal funds regardless of the estate.
The liability is expressly linked to the deceased’s estate in the discontinuance situation.
Section 93 and Partition of HUF Property
Partition of an HUF can change the ownership and distribution of property among members.
However, GST liabilities relating to the HUF’s business up to the time of partition remain relevant.
Section 93(2) prevents the partition itself from automatically eliminating those liabilities.
The members or groups of members become jointly and severally liable for the tax, interest or penalty due up to the time of partition.
Section 93 and Dissolution of a Firm
Similarly, dissolution of a partnership firm does not erase its historical GST liabilities.
If the firm is dissolved, persons who were partners remain jointly and severally liable for tax, interest or penalty due from the firm up to the time of dissolution.
This remains the case even where the liability is determined after dissolution.
Section 93 and Guardianship or Trust
Section 93(4) is connected closely with Section 91.
Section 91 deals with the GST liability while a guardian or trustee is carrying on business on behalf of a minor or incapacitated person.
Section 93(4) deals with what happens when that guardianship or trust ends.
The liability shifts to:
- the ward, in the case of guardianship; or
- the beneficiary, in the case of a trust,
for tax, interest or penalty due up to the time of termination.
Section 91 vs Section 93(4)
These provisions should be understood together.
Section 91
During the relevant guardianship or trust arrangement, tax, interest or penalty is levied upon and recoverable from the guardian, trustee or agent in the circumstances specified by Section 91.
Section 93(4)
When the guardianship or trust is terminated, the ward or beneficiary becomes liable for the relevant tax, interest or penalty due up to the time of termination.
| Situation | Relevant provision |
|---|---|
| Guardian/trustee carrying on business | Section 91 |
| Guardianship/trust terminated | Section 93(4) |
| Liability relating to period before termination | Section 93(4) |
Section 93 and the Insolvency and Bankruptcy Code
Each subsection of Section 93 begins with a qualification referring to the Insolvency and Bankruptcy Code, 2016.
This means the Section 93 mechanism operates subject to the applicable provisions of the IBC where an insolvency situation is involved.
This is particularly relevant where:
- a taxable person is undergoing insolvency;
- an estate is subject to insolvency proceedings;
- a firm or entity is being dealt with under the IBC; or
- the distribution and recovery of liabilities are governed by insolvency law.
Section 93 should therefore not be read as overriding the IBC where the IBC provides otherwise.
Section 93 and Tax, Interest and Penalty
The provision repeatedly refers to three categories:
Tax
The underlying GST liability due under the Act.
Interest
Interest payable under the applicable GST provisions.
Penalty
Penalty legally imposed under the relevant provisions.
Section 93 therefore deals with more than unpaid output tax.
However, Section 93 itself does not independently impose every type of penalty. The underlying penalty must arise under the applicable GST provisions.
Section 93 and GST Registration
Section 93 is a liability provision and does not itself prescribe a separate registration mechanism for each of the situations it covers.
However, changes such as:
- death of a proprietor;
- dissolution of a firm;
- partition;
- termination of a trust; or
- other changes in the legal status of a taxable person
can have separate GST registration consequences under the applicable registration provisions.
For example, where a sole proprietor dies, the legal representative may need to deal with the deceased proprietor’s GST registration and business continuation or cancellation in accordance with the applicable rules.
The liability provision under Section 93 and the registration procedure should therefore be treated as separate but connected issues.
Section 93 and GST Returns
Section 93 does not provide a general exemption from GST return filing.
Where a business continues after the death of a taxable person or under another representative arrangement, the applicable GST return and payment requirements continue according to the law.
Similarly, where a firm is dissolved or a trust is terminated, the applicable final compliance and return requirements should be examined separately.
The liability under Section 93 concerns who remains responsible for tax, interest or penalty; it does not replace the normal procedural requirements of the CGST Act and Rules.
Practical Example Combining Section 93 Provisions
Consider four separate businesses.
Example 1 – Death
Mr. A operates a proprietorship business and dies.
His legal representative continues the business.
Section 93(1)(a) applies to the relevant GST liability of the deceased person.
Example 2 – HUF partition
An HUF operates a taxable business and later partitions its property.
Members or groups of members become jointly and severally liable for GST dues relating to the period up to partition under Section 93(2).
Example 3 – Firm dissolution
A partnership firm is dissolved.
The former partners remain jointly and severally liable for GST dues relating to the period up to dissolution under Section 93(3).
Example 4 – Trust termination
A trustee conducts a business for a beneficiary and the trust is terminated.
The beneficiary becomes liable for tax, interest and penalty due up to the time of termination under Section 93(4).
These examples demonstrate that Section 93 is essentially designed to preserve GST liability despite major changes in the legal status of the taxable person or business arrangement.
Difference Between Section 93 and Section 94
Section 94 is titled “Liability in other cases” and addresses other situations, including discontinuance of business by a firm, association of persons or HUF and certain changes in constitution.
Section 93, by contrast, specifically covers:
- death;
- HUF/AOP partition;
- firm dissolution; and
- termination of guardianship or trust.
Therefore, the two sections should not be treated as interchangeable.
Difference Between Section 93 and Section 90
Section 90 deals with the general liability of partners of a firm.
Section 93(3) deals specifically with the dissolution of the firm.
Section 90 is therefore broader in its basic application, while Section 93(3) addresses the consequences of the firm’s dissolution for liabilities due up to dissolution.
Difference Between Section 93 and Section 91
Section 91 deals with a guardian, trustee or agent carrying on business on behalf of and for the benefit of a minor or incapacitated person.
Section 93(4) applies when the guardianship or trust is terminated.
Thus:
- Section 91 → liability while the arrangement exists.
- Section 93(4) → liability after the arrangement is terminated for dues up to termination.
Difference Between Section 93 and Section 88
Section 88 specifically concerns a company in liquidation.
Section 93 deals with several other special circumstances, including death, partition, dissolution and termination of guardianship or trust.
Therefore, the death of a proprietor, dissolution of a partnership firm and liquidation of a company should not be treated as the same event for GST purposes.
Each situation has its own statutory provisions.
Practical Compliance Checklist Under Section 93
Businesses and their legal representatives should carefully review the following when one of the events covered by Section 93 occurs.
1. Identify the triggering event
Determine whether the situation involves:
- death;
- partition;
- dissolution; or
- termination of guardianship/trust.
2. Identify the relevant date
The exact date of:
- death;
- partition;
- dissolution; or
- termination
can determine the period for which liability is covered.
3. Reconcile GST liabilities
Review:
- tax payable;
- interest;
- penalties;
- pending demands;
- notices;
- assessments; and
- ongoing proceedings.
4. Check whether business continues
In the case of death, determine whether the business is being continued by the legal representative or another person.
5. Preserve records
Maintain:
- GST returns;
- tax invoices;
- books of account;
- payment records;
- GST notices;
- assessment orders;
- partnership documents;
- partition documents;
- trust documents; and
- succession documents.
6. Review registration requirements
Complete applicable GST registration amendments, cancellation or other procedural requirements separately from the liability analysis.
7. Consider insolvency law
Where an insolvency proceeding exists, examine the applicable provisions of the IBC along with Section 93.
👉 Read More → Section 92 – Liability of Court of Wards, etc.
Key Features of Section 93
| Particular | Details |
|---|---|
| Section | 93 |
| Title | Special provisions regarding liability to pay tax, interest or penalty in certain cases |
| Chapter | Chapter XVI – Liability to Pay in Certain Cases |
| Subsection (1) | Death of person liable for GST |
| Subsection (2) | Partition of HUF or association of persons |
| Subsection (3) | Dissolution of firm |
| Subsection (4) | Termination of guardianship or trust |
| Amounts covered | Tax, interest and penalty |
| Liability after death | Legal representative or other person if business continues; estate-based liability if business is discontinued |
| HUF/AOP partition | Members/groups jointly and severally liable |
| Firm dissolution | Former partners jointly and severally liable |
| Guardianship/trust termination | Ward or beneficiary liable |
| Later determination | Covered where specified by the section |
| Insolvency qualification | Subject to the applicable IBC provisions |
Frequently Asked Questions About Section 93
Conclusion
Section 93 of the CGST Act is designed to ensure that GST liabilities remain enforceable even when the legal status of the taxable person or business changes.
In the case of death, the liability is dealt with differently depending on whether the business continues or is discontinued. Where the business continues, the legal representative or another person continuing the business becomes liable. Where the business is discontinued, the legal representative is liable out of the deceased’s estate to the extent that the estate can meet the charge.
For an HUF or association of persons, partition does not eliminate GST liabilities relating to the period before partition, and the members or groups of members can become jointly and severally liable. In the case of dissolution of a partnership firm, the persons who were partners remain jointly and severally liable for GST dues up to the time of dissolution. Finally, where guardianship or a trust is terminated, the ward or beneficiary becomes liable for the relevant tax, interest or penalty due up to the time of termination.
A particularly important feature of Section 93 is that liability can continue to be relevant even where the tax, interest or penalty is determined after the death, partition, dissolution or termination. The section should also be read subject to the applicable provisions of the Insolvency and Bankruptcy Code, 2016.
For businesses, legal representatives, partners, HUF members, trustees and beneficiaries, accurate records and identification of the relevant date are therefore essential when dealing with any event covered by Section 93.
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