Liability of guardians, trustees etc under GST
Section 112 of Model GST Law covers the Liability of guardians, trustees etc
Where the business in respect of which any tax is payable is carried on by any guardian / trustee / agent of a minor or other incapacitated person on behalf of and for the benefit of such minor/incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardian or trustee or agent, as the case may be.
Following persons shall liable to pay tax in respect of such business –
- guardian
- trustee
- agent
The amount of the tax, interest, penalty or any other dues which are recoverable from the minor or any such incapacitated person are the amounts –
- levied / assessed in the hands of guardian, trustee or agent.
- collected from the guardian, trustee or agent.
The term ‘incapacitated person’ is not defined in GST law. It may include persons of unsound mind or terminally ill persons, one who is incapable of or prevented from normal working / functioning.
According to Advanced Law Lexicon, ‘incapacitated person’ is any person who is impaired by reason of mental illness, mental deficiency, physical illness or disability, advanced age, chronic use of drugs, chronic intoxication, or other cause (except minority) to the extent that he lacks sufficient understanding or capacity to make or communicate responsible decisions concerning his person.
Chapter XXII of the Model GST Law contains Chapter XXII comprising of sections 108 to 115 which deal with liability to pay GST in eight special cases as follows :
Section
| Liability |
108 | Liability in case of transfer of business |
109 | Liability in case of amalgamation / merger of companies |
110 | Liability in case of company in liquidation |
111 | Liability of partners of firm to pay tax |
112 | Liability of guardians, trustees etc |
113 | Liability of Court of Wards etc. |
114 | Special provision regarding liability to pay tax in certain cases (death, discontinued business, hindu undivided family or association of persons, on partition, dissolution of firm, termination of guardianship or trust etc). |
115 | Liability in other cases (discontinued business of HUF, firm, AOP; change in constitution of firm or AOP etc.) |
Free Education Guide on Goods & Service Tax (GST)