Allahabad High Court Quashes GST Order Issued Against Deceased Proprietor
A significant ruling by the Allahabad High Court has clarified an important legal principle under the Goods and Services Tax (GST) law — tax proceedings cannot be conducted against a deceased person . Background of the Case In the case of P S Engineers vs State of U.P. and Another , a GST demand of ₹8,94,776 was raised through an order dated 25.02.2025 under Section 73(9) of the GST Act, 2017 . The demand was issued in the name of Parbind Kumar Srivastava , the proprietor of the firm. However, the proprietor had passed away on 25.11.2020 , and the GST registration of the proprietorship firm had already been cancelled with effect from 31.03.2021 through an order dated 12.07.2021 . Despite this, the GST department issued a show cause notice dated 30.11.2024 under Section 73 in the name of the deceased proprietor. Since the GST registration had already been cancelled, the legal representative could not access the GST portal to view or respond to the notice. As a result, the...