220.            The business of minor M is carried on by his guardian, G. The tax liability of such business as on 30.4.2017 was Rs. 1 lacs & as on 30.05.2017 is Rs. 25,000. On 1.5.2017 minor attains the age of 18 years. Discuss the tax liability.

Since minor attains the age of 18 years on 1.5.2017, the time of guardianship terminates. As per section 93 of the CGST Act, on termination of guardianship, minor is liable to pay Tax/ Interest/ Penalty due from guardian upto time of termination of guardianship. Thus, minor M is liable to pay tax upto 30.4.2017 of Rs. 1 lacs only. The liability of Rs. 25,000 which became due after M has become major will be discharged by M himself.