Indian High Courts Clarify GST Liability for Heirs and Refund Eligibility

The Madras High Court ruled that GST authorities may initiate fresh proceedings against the legal heirs of a deceased taxpayer. Under Sections 73, 74, 74A and Section 93 of the CGST Act, the court upheld a liability of ₹3,42,355 for the estate of V. Vasudevan, whose business had been discontinued after his death in 2019. Recovery is limited to the value of the inherited estate.

The Bombay High Court allowed a GST refund for excess input tax claimed for December 2017 to March 2018. It held that the 2019 amendment to Section 54(1) of the GST Act operates prospectively, so the earlier definition of the “relevant date” applies. The court also affirmed that manual filing under Rule 97‑A is permissible when the electronic portal is unavailable, directing the authorities to process the pending refund applications.