Transfer of input tax credit on death of sole proprietor requires prescribed filings for transferee to claim unutilized credit. Transfer of unutilized input tax credit is permitted when a sole proprietor's business is continued by a transferee or successor after the proprietor's death. The transferee must register by filing FORM GST REG-01 with reason 'death of the proprietor,' and the legal heirs may file FORM GST REG-16 to cancel the transferor's registration linking the GSTINs. The transferee must file FORM GST ITC-02 for the registration being cancelled before applying for cancellation; upon acceptance the unutilized credit is credited to the transferee's electronic credit ledger. The transferee and transferor are jointly and severally liable for any tax, interest or penalty due.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transfer of input tax credit on death of sole proprietor requires prescribed filings for transferee to claim unutilized credit.
Transfer of unutilized input tax credit is permitted when a sole proprietor's business is continued by a transferee or successor after the proprietor's death. The transferee must register by filing FORM GST REG-01 with reason "death of the proprietor," and the legal heirs may file FORM GST REG-16 to cancel the transferor's registration linking the GSTINs. The transferee must file FORM GST ITC-02 for the registration being cancelled before applying for cancellation; upon acceptance the unutilized credit is credited to the transferee's electronic credit ledger. The transferee and transferor are jointly and severally liable for any tax, interest or penalty due.
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