Section 92 of GST – Liability of Court of Wards, etc. Everything you want to know about GST Section 92. In this section you may find all details for “Liability of Court of Wards, etc”. Detailed Analysis of GST Section 92 of GST Act 2017.
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Section 92 of GST – Liability of Court of Wards, etc
Where the estate or any portion of the estate of a taxable person owning a business in respect of which any tax, interest or penalty is payable under this Act is under the control of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager (including any person, whatever be his designation, who in fact manages the business) appointed by or under any order of a court, the tax, interest or penalty shall be levied upon and be recoverable from such Court of Wards, Administrator General, Official Trustee, receiver or manager, in like manner and to the same extent as it would be determined and be recoverable from the taxable person as if he were conducting the business himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly.
Analysis of this section
This section empowers collection of tax, interest or penalty from Administrator General, Official Trustee or any receiver or manager, who controls the estate or any portion thereof in respect of the taxable person who owns a business and whose estate is being controlled.
In respect of any tax, interest or penalty relating to a business of the taxable person whose estate or part thereof is under the control of the following persons, the said persons will be liable to pay dues under this Act, as if they were themselves conducting the business as taxable person/s:
(i) Administrator general or
(ii) Official trustee or
(iii) Any receiver or manager or
(iv) Including any person, whatever be his designation, who in fact actually manages the business.
Illustration. Mr. ABC is appointed as manager of Mr. X, to manage the estate of Mr. X, who owns a garment business. Mr. X is liable to pay Rs. 20,00,000/- of CGST, interest and penalty to the Government. The department can recover such dues from Mr. ABC who is managing the estates of Mr. X., by invoking this provision.
Issues and Concerns
- The provisions relating to registration or any other provisions of this Act, does not provide for reference of court of wards by whatever name called such as, Administrative General, The Official Trustee, or any receiver or manager who is controlling the estate of part of the estate of a registered person. It is not clear, whether the assessee himself has to intimate in writing to the jurisdictional officer about court of wards who is conducting business in his behalf and get such court of ward registered in the records of jurisdictional officer.
Q1. Who is liable to pay tax dues if the estate of a taxable person is controlled by Court of Wards?
Ans. The dues are recoverable from the Court of Wards as if he is conducting the business for himself.