TaxTMI 
TaxTMI 
TaxTMI 
The whole world is facing a huge and dangerous pandemic. we have seen death of many people who are near and dear to us . we have also seen business disruption because of lockdown and many business are facing challenge of survive. so many business closing down their operation or transferring business to other person.
so as tax expert we should have clear understanding of law with respect to transfer of business or death of taxable person.
GST is leviable on supply of goods or service and as per section 7 of CGST act , 2017 term ' supply' include sale, transfer, barter, exchange, licence, rental, lease or disposal made for a consideration by a person in the course or furtherance of business.
so as per this definition transfer of business is clearly included under GST law, however there must be consideration however as per schedule para 1 , the government has made deeming provision to include transfer of business made even for without consideration.
further the government made deeming provision to include event by which person make closure of business or surrender of GST number under GST law in para 3(c) of schedule 2. it means if person close or surrender GST number , then it closing stock and assets will be chargeable to GST.
however , the government has given exemption to transfer of business as going concern under Notification No. 12/2017- Central Tax (Rate). it means if person transfer his business as going concern to other , then there will not be any GST payable on such event and as per section 18 he can also transfer ITC and liability of old GST number to new GST number.
you are transfer business as going concern mean you are transferring asset and liability to new person .
so , if on death of taxable person, legal heir decide transfer business to other or continue business as going concern , then there will be no liability for GST payment, however if legal heir decide to close down business , then he will require to pay GST on closing stock and assets.