Regarding recovery of demand there is specific provision in section 93 of CGST/SGST Act  where under  demand could be recovered from business of deceased continued by someone or from the estate of deceased in the hands of legal heir . in other words, it is demand against business/estate of the deceased and could be recovered from the continuing business of deceased/estate of the deceased.

Facts : Petitioner’s father had died while assessment order regarding father was passed against petitioner(son being legal heir of deceased person). Tax, interest or penalty liability – determination against deceased – for the tax period of July, 2017 to March, 2018 .

 HELD: Assessment proceedings can only be initiated against living persons because only living person is individual having legal liabilities and can participate in any legal proceedings including GST assessment proceedings  and such proceedings against death person would not be valid.

Recovery of demand after death of individual taxpayer:

1.   If business of deceased continued Tax dues of dead person can be recovered from business of death person if same is being carried on by his legal representative or any other person

2.   If business of deceased discontinued before his death or after death:  from estate of deceased to the extent estate is capable of meeting out the demand,

 Assessment of after death of individual tax payer – Section 93 does not deal with manner in which assessment proceedings relating to a death person should be carried out.  Hon’ble Andhra Pradesh and Telangana High Court in the case of Baratam Satish vs. Joint Commissioner of Central Tax held that only practicable way of settling affairs of death person would be to direct assessment being carried out by involving either representative or person carrying on business of a death person or, if such business is not being carried on, by involving legal representative who would be holding estate of deceased person. Accordingly Impugned assessment order was to be set aside with a direction to carry out a fresh assessment after involving petitioner-legal heir.

Any recovery that may be initiated, after an Order of assessment, would be only against the estate of a deceased person and against the petitioner to the extent of the estate of his deceased father, which is available to the petitioner

Conclusion: Hon’ble high court has rightly resolved the legal issues under GST related to assessment in the case of death of an individual tax payer. for any clarification author could be reached at cappsingh@gmail.com/ 9711521060