THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
LIABILITY TO PAY IN CERTAIN CASES
Section 93: Special provisions regarding liability to pay tax, interest or penalty in certain cases.
(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––
a)
if
a business
2(17)
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
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
2(17)
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
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,––
(a) is the guardian of a ward on whose behalf the business
2(17)
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
is carried on by the
guardian; or
(b) is a trustee who carries on the business
2(17)
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
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.