Transfer of input tax credit on death of a sole proprietor allowed, subject to specified registration and ITC-02 filing procedures.
Unutilized input tax credit of a sole proprietor who dies may be transferred to the transferee/successor by the transferee filing FORM GST ITC-02 electronically in respect of the registration to be cancelled on account of death; FORM GST ITC-02 must be filed before filing the cancellation application (FORM GST REG-16) that links the transferor and transferee GSTINs. The transferee/successor and transferor are jointly and severally liable for any tax, interest or penalty due from the transferor, and the transferee must obtain registration citing death of the proprietor when filing FORM GST REG-01.

Registration verification: compare new GST applications with prior cancelled registrations to prevent evasion and allow rejection where deficiencies persist.
Proper officers must compare new registration applications with portal records of earlier registrations on the same PAN, verify reasons for prior cancellations and whether revocation of cancellation was sought; non application for revocation while the conditions for cancellation continue is a deficiency under the RGST Rules and may justify rejection of the fresh registration under rule 9.

Refund of accumulated ITC: portal workaround allows claim under "any other" with DRC 03 debit and officer computation.
Remedy permits claiming refund of accumulated ITC for inverted tax structure by filing FORM GST RFD 01A under "any other" for the same period; attach required documents, officer will compute admissible refund under Rule 89(5), instruct taxpayer to debit electronic credit ledger via FORM GST DRC 03, and then issue FORM GST RFD 06 and payment advice FORM GST RFD 05. Late reversals attract interest under section 50(1); refunds remain eligible only after reversal and interest payment. Rule 89(4B) applies to exporters; rectified applications after deficiency memos may be re submitted using the same ARN.

Agricultural produce exemption excludes processed goods from GST exemption for loading, packing, storage and warehousing services.
GST exemption for loading, unloading, packing, storage and warehousing is confined to agricultural produce that has not undergone processing beyond ordinary cultivator or producer operations that preserve its essential characteristics. Factory-processed tea, processed coffee, jaggery, de-husked or split pulses, processed spices, dry fruits and cashew nuts are excluded, while whole pulse grains remain covered. Accordingly, services relating to excluded processed products are not eligible for the agricultural-produce exemption.

Custom paddy milling is taxable job work because rice conversion falls outside the agricultural-process exemption.
Custom milling of paddy into rice is job work service but is not exempt as an intermediate production process related to cultivation or agricultural produce. Milling takes place after harvest, is ordinarily undertaken by rice millers, and changes paddy's essential characteristics into rice. Treatment or processing of another person's goods is a supply of service; accordingly, job-work paddy milling attracts GST at 5 per cent on processing charges rather than the entire value of rice.

Zero-rated fabric exports qualify for refunds of unutilized input tax credit despite restrictions on inverted-duty accumulations.
Refund of unutilized input tax credit remains available to manufacturers exporting specified fabrics as zero-rated supplies, notwithstanding restrictions on refunds where credit accumulates because the tax rate on inputs exceeds the rate on output supplies. Zero-rated supplies include exports and supplies to a Special Economic Zone developer or unit. Manufacturers may claim refund of unutilized input tax credit on inputs used to manufacture and export such fabrics, subject to applicable refund conditions. Credit paid on capital goods is excluded.

Transfer of input tax credit on death of sole proprietor requires prescribed electronic transfer and successor liability for outstanding tax.
Where a sole proprietor dies and the business is continued by a transferee or successor, unutilized input tax credit in the transferor's electronic credit ledger may be transferred to the transferee. The transferee must obtain registration citing death of proprietor, file the prescribed FORM GST ITC-02 electronically before applying for cancellation of the deceased proprietor's registration, and upon acceptance the specified credit will be credited to the transferee's electronic ledger. The transferee/successor and the transferor are jointly and severally liable for any tax, interest or penalty due.

Transfer of input tax credit to transferee after death of sole proprietor, subject to prescribed form filing and joint liability.
Unutilized input tax credit in the electronic credit ledger of a deceased sole proprietor may be transferred to a transferee who continues the business. The transferee must obtain registration citing death of proprietor and file the prescribed electronic form requesting transfer of credit before applying for cancellation; on acceptance the specified credit is credited to the transferee's electronic credit ledger. Transferor and transferee are jointly and severally liable for any tax, interest or penalty due from the transferor, and the person continuing the business after death is liable for outstanding obligations.

Registration verification: failure to seek revocation after cancellation may justify rejection of new GST registration.
Proper officers must verify fresh registration applications against earlier registrations on the same PAN via the common portal, comparing FORM GST REG-01 data and proprietor/partner/director details. If an earlier registration was cancelled for reasons under clauses (b) and (c) of sub section (2) of section 29 and the applicant has not sought revocation while those conditions continue, that omission constitutes a deficiency and may warrant rejection of the new registration under sub rule (2) read with sub rule (4) of rule 9 of the GGST Rules.

Registration verification: fresh GST applications may be rejected if cancelled registration remains unrevoked and violations persist.
Proper officers must scrutinise fresh GST registration applications against earlier registrations on the same PAN via the common portal. If an earlier registration was cancelled for non compliance under clauses (b) and (c) of sub section (2) of section 29 and the applicant has not applied for revocation while the disqualifying conditions persist, that omission is a material deficiency in FORM GST REG-01 and may warrant rejection of the new application under rule 9.

Registration verification: fresh GST applications may be rejected where prior cancellation persists and revocation was not sought.
Proper officers must scrutinise new registration applications on the same PAN when an earlier registration exists or was cancelled, compare portal records and FORM GST REG-01 particulars, and treat failure to seek revocation of cancellation while statutory conditions continue as a deficiency, permitting rejection of the fresh application under rule 9(2) read with rule 9(4) of the CGST Rules.

Refund of accumulated input tax credit: procedural route and required electronic debit before refund order issuance.
A one-time procedural remedy allows taxpayers who already reversed ITC required to lapse to claim the accumulated ITC refund for the same tax period under the "any other" category in FORM GST RFD-01A, submitting all required documents; the proper officer will compute admissible refund under rule 89(5), require debit from the electronic credit ledger via FORM GST DRC-03, and thereafter issue FORM GST RFD-06 and FORM GST RFD-05. Subsequent claims must use the designated inverted-structure refund category.

Refund of unutilized input tax credit: procedural route revised to 'any other' category and DRC-03 debit requirement.
Registered persons who reversed ITC required to be lapsed should claim accumulated ITC refunds for the same period under the "any other" category in the refund form, submit all statutory supporting documents, and, after the proper officer calculates admissible refund, debit the payable amount from the electronic credit ledger via FORM GST DRC-03. Late reversals attract interest from the due date of the relevant return until actual reversal; eligibility to claim refunds remains subject to reversal and payment of interest. Corrected applications after deficiency memos may be resubmitted under the original ARN for processing.

Refund of accumulated ITC: portal workaround permits filing under 'any other' category pending officer adjustment and debit.
Provides a one time procedural remedy for taxpayers who reversed ITC in returns but face portal validation blocking full refund for accumulation due to inverted tax structure: file the affected period claim under "any other" in FORM GST RFD 01A with required supporting statements; the proper officer will calculate the admissible refund under the refund rules, request electronic credit ledger debit via FORM GST DRC 03, and upon receipt of debit proof issue the refund order and payment advice.

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.

Registration verification: officers may reject fresh GST applications when prior cancellations persist without revocation filed.
Proper officers must scrutinise fresh registration applications where a taxpayer has an existing or previously cancelled registration on the same PAN; continued non-compliance and failure to apply for revocation will be treated as a deficiency in the application and may justify rejection. Officers should compare portal records, review FORM GST REG-01 entries and personnel details, and require convincing justification or documentation addressing prior cancellations and ongoing statutory breaches before granting new registration.

Refund of accumulated ITC: file under any other category when reversal recorded and comply with prescribed debit procedure.
Where taxpayers reversed ITC required to lapse, refund of accumulated ITC due to inverted tax structure for the same period may be filed under "any other" in FORM GST RFD-01A with all statutory supporting documents; the proper officer will calculate admissible refund under refund calculation rules, request debit from the electronic credit ledger through FORM GST DRC-03, and upon receipt of debit proof issue the refund order and payment advice. Late reversals may be made via FORM GST DRC-03 but attract interest until reversal and refund is payable only after reversal and interest payment.

NRO account eligibility expanded for LTV holders with visa, permit and quarterly reporting requirements to national authorities.
Authorized Dealers may allow SEBI registered FPIs and FVCIs to open non interest foreign currency accounts for investment. A single NRO Account may be opened for specified minority citizens of Bangladesh or Pakistan holding or applying for an LTV, subject to visa/permit validity, six monthly renewal where applicable, conversion upon Indian citizenship, and quarterly reporting of detailed account information to the Ministry of Home Affairs. SNRR accounts may operate beyond the seven year limit with RBI approval and are exempt from the seven year restriction for SEBI registered investors. Escrow Account rules in Schedule 5 have been replaced to align with the foreign investment regulations, permitting resident and non resident accounts and funding by guarantees.

Establishment of foreign offices: prior central bank approval waived where government sectoral licence or permission exists.
Prior Reserve Bank approval is not required to open a Branch Office, Liaison Office, Project Office or other place of business in India in the Defence, Telecom, Private Security and Information and Broadcasting sectors where government approval, licence or permission from the concerned ministry or regulator has been granted; defence-related Project Offices established pursuant to a contract with the Ministry of Defence, Service Headquarters or Defence PSUs likewise need no separate government reference. The term "permission" excludes general automatic-route FDI permissions; other BO/LO/PO conditions remain unchanged.

Transfer of input tax credit allowed on death of sole proprietor if successor files FORM GST ITC-02 before cancellation.
Clarifies that change in ownership due to death of a sole proprietor is a transfer of business; the successor must register citing "death of the proprietor" and may have unutilized input tax credit transferred by filing FORM GST ITC-02 electronically prior to cancellation. Upon acceptance the specified credit is credited to the successor's electronic credit ledger, and the transferor and transferee/successor are jointly and severally liable for tax, interest or penalty due from the transferor.