GST Liability After Death: What Can Be Claimed From a Legal Representative?

Jaiwanti v. Union of India & Ors. | Delhi High Court | 25 September 2026

A GST investigation does not necessarily end when the person under investigation dies. Section 93 of the CGST Act permits liability arising from a deceased person’s conduct to be determined after death, but does not make an heir personally guilty of that conduct.

The department investigated Ankit Dabas over alleged fraudulent ITC and IGST refunds. After his death, it issued a show cause notice to his wife, Jaiwanti, as legal representative, proposing a penalty linked to his alleged acts. She challenged the power to commence proceedings after his death.

The Court held that Section 93 expressly permits liability to be determined after death. Where the business has been discontinued, recovery from the legal representative is limited to the deceased’s estate and its capacity. The department must still establish the underlying contravention, lawful service, the conditions for representative liability and the amount.

The Court allowed a statutory appeal on the factual disputes. It also required an account of ₹15.40 lakh taken during investigation and the legal basis for retaining it.

Practical effect: A legal representative can contest every element of the alleged liability. Death does not erase a recoverable GST claim, while inheritance alone does not create unlimited personal liability. Source: https://lawlens.in/stories/cgst-proceedings-may-be-initiated-after-a-taxpayers-death-against-legal-representatives-de-17be912f2bec45c282b5dfe81e9a61b5/