Legal Heir Not Liable for GST Dues Without Proof of Business Continuity: Jharkhand High Court

The Jharkhand High Court has ruled that legal heirs cannot be held liable for GST dues under Section 93(1)(a) of the CGST Act unless there is clear evidence showing they continued the deceased's business.

The case involved Rishi Shangari, who had obtained a separate GST registration after his father's death. Despite no proof of business continuation, the tax department issued orders against him.

The Court held that initiating proceedings without such proof was perverse and unsustainable.

Accordingly, the impugned tax order was quashed, and the writ petition was allowed in the petitioner’s favor. (Rishi Shangari v. Union of India)