Transfer of input tax credit permitted on death of sole proprietor; transferee files ITC-02 and assumes related liabilities. Unutilized input tax credit may be transferred when a sole proprietor dies and the business continues under a transferee/successor. The transferee must register with reason 'death of the proprietor,' the transferor may cancel registration linking the transferee's GSTIN, and FORM GST ITC-02 must be filed electronically by the transferee for the registration being cancelled prior to filing the cancellation; upon acceptance the credit is credited to the transferee's electronic credit ledger. Transferor and transferee are jointly and severally liable for tax, interest or penalty due from the transferor. Effective date: 28.03.2019.
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 permitted on death of sole proprietor; transferee files ITC-02 and assumes related liabilities.
Unutilized input tax credit may be transferred when a sole proprietor dies and the business continues under a transferee/successor. The transferee must register with reason "death of the proprietor," the transferor may cancel registration linking the transferee's GSTIN, and FORM GST ITC-02 must be filed electronically by the transferee for the registration being cancelled prior to filing the cancellation; upon acceptance the credit is credited to the transferee's electronic credit ledger. Transferor and transferee are jointly and severally liable for tax, interest or penalty due from the transferor. Effective date: 28.03.2019.
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