Assessment Proceedings Against Deceased Under GST Without Involving Estate Representative Are Invalid

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The Andhra Pradesh High Court, in [2026] 182 taxmann.com 89 (decided on 24-12-2025), has clarified the legal position regarding GST assessment proceedings initiated after the death of a taxpayer. The Court held that assessment or demand proceedings cannot be validly concluded against a deceased person and that any such proceedings must necessarily involve the proper representative of the deceased’s estate or the person carrying on the deceased’s business. An assessment order passed directly against a legal heir, without following the prescribed legal procedure and without affording an opportunity of hearing in the capacity of a legal representative, was held to be invalid and unsustainable in law.

Citation: [2026] 182 taxmann.com 89 (Andhra Pradesh High Court)

Issue:
Whether a GST assessment/demand can be validly made against a deceased person or a legal heir directly, without involving a proper representative of the estate or business.

Facts & Context

  • GST authorities issued a show-cause notice and assessment/demand order after the proprietor had already died.
  • The order was passed in the name of the deceased person without involving legal heirs or the representative handling the deceased’s estate/business.

High Court’s Key Holdings

  1. Proceedings Cannot Be Initiated Against a Deceased Person
    The High Court held that once it is known that a taxpayer is deceased, GST proceedings cannot be lawfully continued or concluded against the deceased individual. Any such order is invalid.
  2. Legal Heirs Cannot Be Directly Targeted Without Proper Involvement
    An assessment order against a legal heir without formally involving them as the estate’s representative or business successor is not valid. The mere fact that someone is a legal heir does not automatically make them a proper party unless they are also the person carrying on the business or formally representing the deceased’s estate in GST proceedings.
  3. Requirement to Involve Estate Representative / Business Successor
    Before concluding any GST determination (assessment/demand), the authorities must:

    • Identify who is carrying on the business (if continued);
    • Or identify the legal representative/administrator of the deceased’s estate;
    • And then issue valid show-cause notices/orders to such person(s). Only then can proceedings properly continue to determine liability.

Legal Principle

  • The law emphasises natural justice and procedural fairness — you cannot determine liability or issue orders against a person who no longer exists in law.
  • Section 93 of the CGST Act, 2017 provides the extent of liability on legal representatives or successors (where business continues or is discontinued) — but it does not validate proceedings against a dead person or skip the requirement to involve the estate’s representative.

Practical Outcome

  • The assessment/demand order passed against the deceased (or a legal heir not properly made a party) was held to be invalid.

  • The High Court set aside that order and indicated that the proper procedure must be followed — involving the correct representative and giving them an opportunity to respond before any fresh order is passed.

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