1. Why Section 92 matters
Changing who controls a business does not automatically stop GST liability.
There can be situations where the estate of a taxable person or part of that estate comes under the control of a Court of Wards, Administrator General, Official Trustee, receiver or manager appointed by or under a court order.
The business may continue during this period. GST still has to be accounted for, returns may have to be filed, tax may have to be paid and departmental proceedings may continue.
Section 92 addresses this by providing that the tax, interest or penalty is levied upon and recoverable from the specified controlling person in the same manner and to the same extent as it would have been determined and recovered from the taxable person if that person were conducting the business himself.
2. What people actually search for
This article is designed around practical questions that arise when a business comes under court or statutory management:
3. Section 92 in simple language
Imagine a taxable person owns a running business. A court appoints a receiver to take control of the business and manage its affairs.
The receiver cannot say: “The original owner is no longer managing the business, so GST does not concern me.”
Section 92 provides the GST mechanism for this situation. The receiver or manager covered by the section becomes the person from whom the applicable tax, interest or penalty is levied and recovered, in the same manner and to the same extent as it would have been from the taxable person.
4. Complete statutory structure
| Element | Meaning |
|---|---|
| Estate under control | The estate or any portion of the estate of a taxable person owning a business is under specified control. |
| Business | The taxable person owns a business in respect of which tax, interest or penalty is payable. |
| Specified controller | Court of Wards, Administrator General, Official Trustee, receiver or manager. |
| Court appointment | For a receiver/manager, the appointment is by or under an order of a court. |
| GST consequence | Tax, interest or penalty is levied upon and recoverable from the specified person. |
| Extent | Determination and recovery operate in the same manner and to the same extent as for the taxable person. |
The operative Section 92 framework is part of the CGST Act's original liability chapter and was brought into force from 1 July 2017.
5. When Section 92 applies
Section 92 should be tested through a sequence:
Who owns the business?
Is the estate or a portion of it under the specified control?
Is it the Court of Wards, Administrator General, Official Trustee, receiver or manager?
For receiver/manager, examine the court order.
Tax, interest or penalty payable under the Act.
Levy and recovery operate against the specified controller in the statutory manner.
6. Who can be covered?
Court of Wards
A statutory/court-supervised authority contemplated by the provision.
Administrator General
The office/person acting in the capacity recognised by applicable law.
Official Trustee
The statutory trustee where the estate/business falls within the relevant legal arrangement.
Receiver
A receiver appointed by or under an order of a court.
Manager
A manager appointed by or under a court order, including a person who actually manages the business regardless of designation.
7. Court of Wards
The expression “Court of Wards” appears in Section 92 because the GST Act anticipates situations where property or an estate may be administered under a legally recognised protective/court-supervised arrangement.
For a real case, the underlying court/statutory order and the applicable local law should be examined before concluding that Section 92 applies.
8. Administrator General
An Administrator General may administer estates under the legal framework governing that office. If the conditions of Section 92 are satisfied and the business falls under the relevant control, GST liability is dealt with through the Section 92 mechanism.
The important point is capacity: the person must be acting in the statutory office contemplated by the provision, not merely performing an unrelated administrative role.
9. Official Trustee
Section 92 separately names the Official Trustee. The practical analysis should identify the legal order or statutory basis under which the Official Trustee controls the relevant estate or business.
Once the statutory conditions are satisfied, GST tax, interest and penalty are dealt with under Section 92 in the same manner and to the same extent specified by the Act.
10. Receiver
The receiver is often the most practically relevant category for businesses under court supervision.
A receiver may take possession/control of assets, operate a business, collect receivables, make payments or preserve business value. If the receiver is appointed by or under a court order and the Section 92 conditions are satisfied, GST compliance must be addressed as part of the receiver's management responsibilities.
11. Manager appointed by court
Section 92 expressly covers a manager appointed by or under an order of a court.
The manager may have a title such as administrator, managing officer or another designation. What matters is the statutory condition and the actual role.
The provision is therefore particularly important where the court gives a manager operational control over a running taxable business.
12. Why designation is not decisive
The section contains an important phrase covering “any person, whatever be his designation, who in fact manages the business” in the context of a receiver or manager appointed by or under a court order.
This prevents a GST analysis from being decided solely by the job title printed on a document.
| Question | Why it matters |
|---|---|
| What does the court order say? | Establishes the legal appointment/control. |
| Who actually manages the business? | Actual management can matter where the section expressly looks beyond designation. |
| Who signs contracts/invoices? | Helps establish operational control. |
| Who controls bank/payment decisions? | Relevant to actual management. |
| Who handles GST compliance? | Important for practical compliance, though GST responsibility must be analysed legally. |
13. Estate or part of an estate
Section 92 does not require the entire estate to be under control. The wording covers the estate or any portion of the estate.
This matters where only one business, property or part of an estate is placed under court-controlled management.
For professional review, map the court order against the assets and business actually controlled. Avoid assuming that control over one property automatically means control over every business or asset of the taxable person.
14. The business condition
Section 92 applies where the taxable person owns a business in respect of which tax, interest or penalty is payable under the CGST Act.
Therefore, identify the business first:
15. What does “in the same manner and to the same extent” mean?
This phrase is central to understanding Section 92.
It means the change in control does not create a special lower GST liability. The tax, interest and penalty are dealt with using the normal GST framework applicable to the underlying taxable business.
The receiver or manager should therefore not treat Section 92 as a separate GST rate or a separate exemption. It is a liability mechanism for a business whose management has changed because of a specified legal arrangement.
16. Tax, interest and penalty
Output/other GST liability payable under the Act.
Applicable statutory interest.
Penalty payable under applicable GST provisions.
Amounts are recoverable from the specified controller according to Section 92 and the applicable recovery framework.
The underlying demand should always be reviewed for tax period, legal basis, payments, interest calculation, penalty and appeal/stay status.
17. GST registration
Section 92 is a liability provision; it does not itself replace the registration provisions.
Where a receiver or court-appointed manager takes over a running GST business, the first step should be to determine how the existing taxable person's registration and authorised-person records are to be handled under the applicable registration framework.
Do not assume that a receiver automatically needs a completely new GSTIN merely because management has changed. The legal identity of the taxable person, PAN, court order and applicable registration rules must be reviewed together.
18. GST returns and tax payments
A receiver or manager operating the business should establish a compliance calendar immediately.
| Area | Action |
|---|---|
| Pending returns | Identify all outstanding GST returns. |
| Current returns | Continue filing applicable returns for ongoing business. |
| Tax payment | Reconcile liability with cash/credit ledger and bank payments. |
| ITC | Review eligibility and reconciliation before utilisation. |
| Notices | Prepare a central notice and litigation register. |
| Recovery | Identify outstanding demands and payment status. |
19. Books and records
Good records are especially important when a business changes hands or comes under court control.
Where the business is a works contractor, separate contract-wise records are particularly useful for GST review.
20. Notices, assessment and recovery
The appointment of a receiver or manager does not erase earlier GST proceedings. Existing notices, scrutiny, audit, assessment, demand and recovery issues must be mapped into the new management file.
Recommended notice review
- Identify the tax period.
- Identify the statutory provision involved.
- Check whether an order has already been passed.
- Reconcile payments made before and after appointment.
- Check appeals and stays.
- Identify deadlines.
- Ensure the court-appointed controller's role is properly documented.
21. Section 92 vs liquidation
Section 92 should not automatically be equated with liquidation.
A receiver or manager may be appointed in several legal situations, including circumstances where the business or estate requires court-supervised management. Liquidation has its own statutory framework and may involve separate provisions.
Where insolvency or liquidation is involved, the Insolvency and Bankruptcy Code and the specific GST provisions dealing with liquidation must also be considered. Section 92 should be applied to its own statutory facts.
22. Construction and infrastructure examples
Court-appointed receiver of a construction company
A court appoints a receiver to operate a construction business while preserving project value. The receiver should immediately identify GSTINs, ongoing contracts, RA bills, advances, subcontractor ITC, RCM, pending returns and GST demands.
Infrastructure project under management order
A manager appointed by court takes control of a project company. The court order should be mapped against the business and assets under control, followed by a GST compliance takeover review.
Property estate with rental business
Part of an estate contains commercial properties generating taxable supplies. The controlling person should review GST registration, rental invoices, tax payment and return filing for the business under control.
23. Detailed practical cases
Case 1 — Receiver appointed for entire business
Receiver takes operational control. Obtain court order, identify GST registration and immediately reconstruct pending GST compliance.
Case 2 — Receiver controls only one property
Because Section 92 refers to an estate or any portion of an estate, identify exactly which business/property is under control rather than assuming control over everything.
Case 3 — Manager has different designation
Review the court order and actual management role. Section 92 expressly looks beyond designation in the specified receiver/manager context.
Case 4 — Old GST demand exists
Map the demand to the business and determine how it should be dealt with under the court-controlled management framework.
Case 5 — Current GST returns are pending
Prepare a return and payment calendar immediately; court control does not suspend normal GST compliance automatically.
Case 6 — ITC mismatch
Perform GSTR-2B and purchase-register reconciliation before claiming additional ITC.
Case 7 — RCM exposure
Review RCM categories separately because they can create cash tax liability.
Case 8 — Construction contracts continue
Review contract-wise invoices, advances, RA bills, retention and subcontractor transactions.
Case 9 — Court order changes
Maintain a chronology of appointment, modification and discharge orders and map each period to the person in control.
Case 10 — Business sold during receivership
Analyse the transfer separately under the applicable GST provisions; do not assume Section 92 alone answers the transfer consequences.
Case 11 — GST notice arrives after appointment
Update the department-facing compliance file and respond within the applicable time while preserving the court appointment evidence.
Case 12 — Recovery notice
Reconcile the original demand, payments, appeal status and legal capacity of the person receiving the recovery communication.
24. Professional receiver/manager workflow
Read the exact appointment and scope.
GSTIN, PAN and business identity.
Identify assets/business actually under control.
Returns, ledgers, demands and notices.
Output tax, ITC, RCM and payments.
Current and overdue returns.
Tax, interest, penalty and appeal status.
Keep court and GST documentation together.
Tax, legal and insolvency teams where required.
Include material GST exposure where appropriate.
25. Internal controls
| Control | Recommended practice |
|---|---|
| Court-order register | Maintain every appointment/modification/discharge order. |
| GST compliance calendar | Track all return and payment deadlines. |
| Demand register | Track tax, interest, penalty, appeals and recovery. |
| Bank control | Reconcile GST payments with electronic ledgers. |
| ITC control | Reconcile GSTR-2B and supporting invoices. |
| Contract control | For construction, maintain contract-wise GST workings. |
| Notice control | Centralise departmental correspondence and deadlines. |
26. Documents checklist
27. Common mistakes
- Assuming court control stops GST obligations.
- Failing to read the exact court order.
- Assuming every receiver is automatically covered without checking the statutory conditions.
- Ignoring the phrase “any portion of the estate”.
- Failing to identify the business actually under control.
- Assuming a new GSTIN is automatically required merely because management changed.
- Ignoring old GST demands and notices.
- Failing to reconcile ITC before filing returns.
- Ignoring RCM and cash-payment requirements.
- Mixing court/insolvency records with GST records without a clear chronology.
- Failing to document who actually manages the business.
- Confusing Section 92 with Section 93 death/dissolution liability.
28. Section 89–93 comparison
| Provision | Main subject | Core mechanism |
|---|---|---|
| Section 89 | Directors of private company | Specified director liability where company tax/interest/penalty cannot be recovered, subject to conditions. |
| Section 90 | Partners of firm | Firm and each partner jointly and severally liable, with retirement rules. |
| Section 91 | Guardian/trustee/agent | Liability where business is carried on for minor/incapacitated person. |
| Section 92 | Court of Wards/Administrator General/Official Trustee/receiver/manager | Liability where estate/business is under specified legal control. |
| Section 93 | Death, HUF/AOP partition and firm dissolution | Special liability rules for succession, partition and dissolution. |
29. Legislative position
Section 92 formed part of the original CGST Act liability framework and came into force from 1 July 2017. The current provision continues to focus on the specified persons controlling an estate or business and applies the normal GST liability framework to them.
The provision is short, but it becomes practically significant when court orders, receivership, estate administration and continuing business operations overlap.
30. Section 92 GST FAQs
What is Section 92 of the CGST Act?
Section 92 deals with GST liability where the estate or part of the estate of a taxable person owning a business is under the control of a Court of Wards, Administrator General, Official Trustee, receiver or manager in the circumstances specified by the section.
Who is liable under Section 92?
The specified controlling person—Court of Wards, Administrator General, Official Trustee, receiver or manager—is the person from whom tax, interest or penalty is levied and recovered under the provision.
Does Section 92 apply to a receiver?
Yes, where the receiver is appointed by or under an order of a court and the other statutory conditions are satisfied.
Does Section 92 apply to a manager?
Yes, where the manager is appointed by or under a court order and the statutory conditions are satisfied. The section also looks to actual management regardless of designation in the specified context.
Does court control stop GST?
No. GST compliance does not automatically stop merely because the business comes under court-controlled management.
Does a receiver need to pay GST?
Where Section 92 applies, tax, interest and penalty are levied upon and recoverable from the receiver in the statutory manner.
What does “same manner and same extent” mean?
The GST liability is handled under the ordinary framework applicable to the underlying taxable business rather than creating a reduced or special liability merely because management has changed.
Does Section 92 cover the whole estate?
It can apply where the estate or any portion of the estate is under the specified control.
Does every court-appointed manager come under Section 92?
The actual appointment, court order, business and statutory conditions should be examined. A title alone should not be treated as conclusive.
Does Section 92 apply to liquidation?
Section 92 should not automatically be treated as a liquidation provision. Where insolvency or liquidation is involved, the applicable insolvency and GST provisions should also be reviewed.
Does the receiver need a new GSTIN?
Not automatically. Registration consequences depend on the taxable person's legal identity, PAN, court order and applicable registration rules.
What records should a receiver maintain?
Maintain the court order, GST registration records, returns, invoices, books, electronic ledgers, tax payments, notices, demands, appeals and business contracts.
Can old GST dues be recovered after a receiver is appointed?
Existing GST liabilities and proceedings do not automatically disappear. The demand, payments, appeals and Section 92 applicability should be reviewed.
What should be done immediately after appointment?
Obtain the court order, identify the GSTIN/business under control, freeze the compliance position, reconcile returns and ledgers, identify demands and establish the ongoing filing/payment calendar.
32. Key takeaways
- Section 92 deals with a business whose estate or part of the estate is under specified court/statutory control.
- The provision covers Court of Wards, Administrator General, Official Trustee, receiver and manager in the specified circumstances.
- For receiver/manager, the court appointment/order is critical.
- Tax, interest and penalty are covered.
- The business does not become GST-free merely because management changes.
- “Same manner and same extent” means the ordinary GST liability framework continues to apply.
- Control over only a portion of an estate can be relevant because the section expressly includes any portion.
- The actual court order and actual business management should be examined carefully.
- GST registration, returns, tax payments, ITC and records must be brought under control immediately.
- Section 92 should be distinguished from Sections 89, 90, 91 and 93.
Why this article is designed differently: It is written as a practical search reference for receivers, managers, legal teams, finance teams and tax professionals dealing with businesses under court-controlled management.
Disclaimer: This guide is for practical educational use. Court-controlled estates and businesses can involve civil procedure, insolvency, succession, property and other laws in addition to GST. Review the actual court order, GST records and current law before taking action.