Liability of guardians, trustees etc under GST

By | October 23, 2016
(Last Updated On: October 23, 2016)

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

108Liability in case of transfer of business
109Liability in case of amalgamation / merger of companies
110Liability in case of company in liquidation
111Liability of partners of firm to pay tax
112Liability of guardians, trustees etc
113Liability of Court of Wards etc.
114Special 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).
115Liability 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)


SR No

Topic -GST

Resources

1

Model GST Law

Model GST Law

2

GST Overview

Goods and Services Tax (GST): An Overview

Integrated Goods & Service Tax (IGST) Act Overview

Meaning and Scope of Supply

Time of Supply

Place of Supply of Goods and Service under GST

Valuation in GST

Levy of GST & Exemption from Tax

Job Work under Goods & Service Tax (GST)

Electronic Commerce under Goods & Service Tax (GST)

3

Transition to GST

Transitional Provisions in Goods & Service Tax (GST)

4

Registration

GST Registration FAQ’s

GST Registration Process -Video

GST -Draft Registration Rules

GST -Draft Registration Formats

5

Invoice

GST Draft Invoice Rules released by CBEC

GST Draft Invoice formats Released by CBEC

6

Input Tax Credit

Input Tax Credit under Goods & Service Tax (GST)

Concept of Input Service Distributor in Goods & Service Tax (GST)

7

Payment

GST Payment of Tax

GST Draft Payment Rules Released by CBEC

GST Draft Payment formats Released by CBEC

8

Refunds

Refund under GST

Draft GST Refund Forms released by CBEC

Draft GST Refund Rules released by Govt

9

Returns

Returns Process and matching of Input Tax Credit under GST

Draft GST Return Rules Released by Govt

Draft GST Return Formats released by Govt

10

Assessment and Audit

Assessment and Audit under GST

11

Inspection, Search, Seizure and Arrest

Inspection, Search, Seizure and Arrest under GST

12

Offences, Penalty, Prosecution & Compounding

Offences, Penalty, Prosecution & Compounding in GST

13

Demands and Recovery

Demands and Recovery under GST

14

Appeals and Review

Appeals, Review and Revision in GST

15

Advance Ruling

Advance Ruling in Goods and Service Tax (GST)

16

Settlement Commission

Settlement Commission in Goods and Service Tax (GST)

17

GST Portal

Frontend Business Process on GST Portal

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