Transfer of input tax credit on death of sole proprietor allowed to transferee if business continues, with prescribed filing steps. Permits transfer of unutilized input tax credit in the electronic credit ledger to a transferee/successor when a sole proprietor dies and the business is continued. The transferee/successor must register-citing death of proprietor-and file FORM GST ITC-02 electronically before applying for cancellation, linking the transferor's GSTIN; upon acceptance, the specified unutilized ITC is credited to the transferee. The transferee/successor is jointly and severally liable for tax, interest or penalty due from the transferor, and the person who continues the business after death remains liable for outstanding liabilities.
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 allowed to transferee if business continues, with prescribed filing steps.
Permits transfer of unutilized input tax credit in the electronic credit ledger to a transferee/successor when a sole proprietor dies and the business is continued. The transferee/successor must register-citing death of proprietor-and file FORM GST ITC-02 electronically before applying for cancellation, linking the transferor's GSTIN; upon acceptance, the specified unutilized ITC is credited to the transferee. The transferee/successor is jointly and severally liable for tax, interest or penalty due from the transferor, and the person who continues the business after death remains liable for outstanding liabilities.
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