06/02/2026
**Death Sent Him to Heaven,
But the System Sent His Family a GST Demand**
A Conversation That Stayed With Me
Yesterday, a young man came to meet me.
There was exhaustion in his eyes.
Fear in his voice.
And confusion in every word.
He said:
“Sir…
My father passed away a few days ago.
Even the rituals are not over yet…
And a GST Demand Order has arrived in his name.”
He paused.
Then softly added:
“I don’t know anything about my father’s business.
I never managed it.
I don’t intend to continue it either.
This GST mess…
How do I get out of it?”
At that moment, it was clear—
👉 This is not just his problem.
👉 This is the problem of hundreds of families
who lose a loved one—and then are forced to fight notices instead of grieving.
That is why this article.
Where Does the Problem Begin?
The story is almost always the same:
🔥 A sole proprietor passes away
🔥 The family is in mourning
🔥 But the GST registration remains active
And then—
📩 Show Cause Notices
📄 Demand Orders
Issued in the name of a person who is no longer alive.
Naturally, families ask:
❓ Who will reply?
❓ Who will attend hearings?
❓ From whom will recovery be made?
And the department often gives one standard answer:
“Section 93 is applicable.”
But the real question is—
👉 What does Section 93 actually say?
👉 And is the department using it correctly?
Section 93 of the CGST Act — Truth vs Misconception
Section 93 provides that:
If a taxable person dies—
1️⃣ If the business is continued,
the person who continues it becomes fully liable.
OR
2️⃣ If the business is discontinued,
the legal heir is liable only to the extent of the estate inherited.
So far, so good.
But here is the most ignored and most important point:
⚠️ Section 93 is a recovery provision.
⚠️ It is NOT an adjudication or assessment provision.
Meaning—
✔️ It explains from whom tax can be recovered
❌ It does NOT explain against whom proceedings can be initiated
So the real legal questions are:
❓ In whose name can a notice be issued?
❓ Who must be heard?
❓ In whose name can an order be passed?
These questions go to the root of legality.
When Courts Were Asked to Decide
1️⃣ Rajvanti Devi vs State of U.P.
Writ Tax No. 142 of 2026
Allahabad High Court | 29.01.2026
In this case:
The department passed an order in the name of a deceased person
And attempted recovery from the legal representative
The Court clearly held:
👉 Section 93 talks about liability,
👉 But it does not permit adjudication against a dead person
Therefore:
🔥 Any SCN or order issued in the name of a deceased person is invalid.
The Court further ruled:
✔️ If the department wants to hold a legal representative liable,
✔️ They must issue notice to that legal representative
✔️ And grant proper opportunity of hearing
This is not a formality—
It is a mandatory legal requirement.
2️⃣ Baratham Satish vs JC of Central Tax
Writ Petition No. 6029 of 2025
Andhra Pradesh High Court | 24.12.2025
The Court went even further and clarified:
👉 Proceedings cannot continue against a dead person.
However—
✔️ Tax dues can be determined afresh
✔️ By involving the legal representative
But with one strict limitation:
❌ Personal income or personal assets of the legal heir cannot be touched
✔️ Recovery is limited only to the estate inherited
In Simple Words
You cannot issue notices
to someone who can no longer hear.
You cannot demand explanations
from someone who no longer exists.
Law does not permit
convenience at the cost of justice.
Who Is a “Legal Representative”?
Not decided by:
❌ Relationship alone
❌ Name in records
It is decided by reality:
✔️ Who inherited the assets
✔️ Who received the estate
That person—and only that person—can be treated as a legal representative.
What Families Should Do After Death of a Sole Proprietor
1️⃣ Immediately submit the Death Certificate to the department
2️⃣ If the business is continued
Change authorised signatory
Transfer ITC using ITC-02
3️⃣ If the business is discontinued
Inform the department
Apply for GST cancellation
4️⃣ In all communications:
Mention the relationship clearly
Use the term “legal representative” cautiously
5️⃣ If you inherit assets,
You inherit responsibility only to that extent
6️⃣ Remember—
This is a digital ecosystem
Banks, GST portal, property records—all are interconnected
Every decision must be taken consciously
The Principle Is Simple
Whoever inherits the estate,
answers to the demand—
only to that extent.
Whoever inherits nothing,
owes nothing.
Disclaimer
⚠️ This article is for general awareness only
⚠️ Creative narration is used for easier understanding
⚠️ Do not take tax or legal decisions solely based on this article
⚠️ Always consult your Tax Consultant or Legal Advisor
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