Fresh GST Proceedings Can Be Initiated Against Legal Heirs of a Deceased Proprietor, Even Where No Notice Was Issued During His Lifetime

Last updated: 07 July 2026

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The Madras High Court has ruled that fresh GST proceedings can be initiated against the legal heirs of a deceased proprietor, even if the business has been discontinued and no notice was issued during the proprietor's lifetime. This is permissible under Section 93 of the CGST Act, which allows for the determination of tax liabilities after death. However, the legal heir's liability is limited to the extent of the inherited estate.

Court :
Madras High Court

Brief :
The Hon’ble Madras High Court in the case of V. Damayanti v. The Superintendent of GST and Central Excise [W.P.(MD) No. 10000 of 2026 dated June 16, 2026] dismissed the writ petition filed by the legal heir of the deceased proprietor and upheld the demand initiated under Section 74 of the Central Goods and Services Tax Act, 2017 ( "the CGST Act" ) after the death of the taxable person. The Court held that even in a case where the business of the deceased taxable person has been discontinued and no show cause notice or assessment proceedings had been initiated during his lifetime, fresh proceedings may nevertheless be initiated against the legal heir under Sections 73, 74 or 74A of the CGST Act, in view of Section 93 of the CGST Act. However, in cases of discontinued businesses, the liability of the legal heir shall remain restricted to the extent of the estate inherited by him.

Citation :
W.P.(MD) No. 10000 of 2026 dated June 16, 2026

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Attached File : 671907_6033_madras_hc_v_damayanti.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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