Transfer of input tax credit on death of sole proprietor requires prescribed electronic transfer and successor liability for outstanding tax. Where a sole proprietor dies and the business is continued by a transferee or successor, unutilized input tax credit in the transferor's electronic credit ledger may be transferred to the transferee. The transferee must obtain registration citing death of proprietor, file the prescribed FORM GST ITC-02 electronically before applying for cancellation of the deceased proprietor's registration, and upon acceptance the specified credit will be credited to the transferee's electronic ledger. The transferee/successor and the transferor are jointly and severally liable for any tax, interest or penalty due.
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Transfer of input tax credit on death of sole proprietor requires prescribed electronic transfer and successor liability for outstanding tax.
Where a sole proprietor dies and the business is continued by a transferee or successor, unutilized input tax credit in the transferor's electronic credit ledger may be transferred to the transferee. The transferee must obtain registration citing death of proprietor, file the prescribed FORM GST ITC-02 electronically before applying for cancellation of the deceased proprietor's registration, and upon acceptance the specified credit will be credited to the transferee's electronic ledger. The transferee/successor and the transferor are jointly and severally liable for any tax, interest or penalty due.
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