Transfer of input tax credit allowed to transferee when a sole proprietor's business continues after death; file ITC 02 before cancellation. Death of a sole proprietor is treated as transfer of business permitting transfer of unutilized input tax credit to the transferee who continues the business. The transferee must register citing death of the proprietor, file FORM GST ITC-02 for the registration to be cancelled, and submit ITC-02 before filing the cancellation application; accepted credits will be credited to the transferee's electronic credit ledger. Transferor and transferee are jointly and severally liable for tax, interest, or penalties due from the transferor, and the person continuing the business after death is liable for amounts due from the deceased.
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 allowed to transferee when a sole proprietor's business continues after death; file ITC 02 before cancellation.
Death of a sole proprietor is treated as transfer of business permitting transfer of unutilized input tax credit to the transferee who continues the business. The transferee must register citing death of the proprietor, file FORM GST ITC-02 for the registration to be cancelled, and submit ITC-02 before filing the cancellation application; accepted credits will be credited to the transferee's electronic credit ledger. Transferor and transferee are jointly and severally liable for tax, interest, or penalties due from the transferor, and the person continuing the business after death is liable for amounts due from the deceased.
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