Transfer of input tax credit allowed on death of sole proprietor when successor continues business, with registration and joint liability. Unutilized input tax credit of a deceased sole proprietor may be transferred to the transferee/successor who continues the business. The transferee must register with reason 'death of the proprietor,' file FORM GST ITC-02 electronically before applying for cancellation (FORM GST REG-16) to link GSTINs, and upon acceptance the specified credit is credited to the transferee's electronic credit ledger. Transferor and transferee/successor remain jointly and severally liable for tax, interest, and penalty due from the transferor.
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 on death of sole proprietor when successor continues business, with registration and joint liability.
Unutilized input tax credit of a deceased sole proprietor may be transferred to the transferee/successor who continues the business. The transferee must register with reason "death of the proprietor," file FORM GST ITC-02 electronically before applying for cancellation (FORM GST REG-16) to link GSTINs, and upon acceptance the specified credit is credited to the transferee's electronic credit ledger. Transferor and transferee/successor remain jointly and severally liable for tax, interest, and penalty due from the transferor.
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