Transfer of Input Tax Credit: transferee may receive unutilized credit when a sole proprietor's business continues after death. The circular clarifies that continuation of a sole proprietorship by a transferee or successor on the proprietor's death constitutes a transfer of business permitting transfer of unutilized input tax credit. The transferee/successor must register from the date of transfer and link to the transferor's GSTIN; they and the transferor are jointly and severally liable for tax, interest or penalty due. The transferee/successor shall file Form GST ITC-02 on the common portal before applying for cancellation, and upon acceptance the unutilized credit will be credited to the transferee's electronic credit ledger.
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: transferee may receive unutilized credit when a sole proprietor's business continues after death.
The circular clarifies that continuation of a sole proprietorship by a transferee or successor on the proprietor's death constitutes a transfer of business permitting transfer of unutilized input tax credit. The transferee/successor must register from the date of transfer and link to the transferor's GSTIN; they and the transferor are jointly and severally liable for tax, interest or penalty due. The transferee/successor shall file Form GST ITC-02 on the common portal before applying for cancellation, and upon acceptance the unutilized credit will be credited to the transferee's electronic credit ledger.
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