Death of Sole Proprietor

[Ashiesh Prremji]

Dear Sir,

Please suggest in case of death of sole Proprietor, if some GST Returns were not filed before death , so now how to file those Returns through successor. Here, successor is also GST Registered Taxpayer, So what process we need to follow to file earlier pending GST Returns & to succeed business of Proprietor ?

Also When to proceed for cancellation of GST registration of said Proprietor ?

Thanks !

[RAHUL AGRAHARI]

Dear Ashiesh Prremji,

Option -1 if there are transactions in the period of non-filling of GST return - you can file the return by the id pw.

Option-2 if there are no transactions in the period of non-filling of GST return you can request for cancel the GST registration since no transactions in the firm .

(Note- Make sue, there must not be any due liability of GST before filling the gst cancellation and after cancellation you can download the GST cancellation certificate from - SERVICE-USER SERVICES-VIEW/DOWNLOAD CERTIFICATE )

Thanks

[Ashiesh Prremji]

Thank You for Reply!

First thing, we have liability to pay for earlier pending Returns.

So, in Option I, please clarify your points. How can we use deceased person id pw to verify. Sir, correct me if i am wrong, in that case only legal heir can file all Returns & if legal hier is unregistered then he/she needs to take GST registration under Section 22 with reason death of Proprietor.

Here legal heir already GST registered party, so my concern is how to add legal heir to pay all liability & to continue such business as successor ? As i use to add authorized signatory, portal shows error such PAN is registered, if i go for cancellation which option should select whether " Death of Proprietor" or "Transfer of Business".

Please clarify how to proceed....

[KASTURI SETHI]

Dear Ashish Prem Ji,

The following circular can help you for all purposes :-

Input Tax Credit (ITC) - Transfer of ITC in case of death of sole proprietor - Clarification

Circular No. 96/15/2019-GST, dated 28-3-2019

AI Summary

Succession of GST registration: steps for a legal heir to file pending returns and resolve tax liabilities. If transactions exist for unfiled periods, pending GST returns must be filed and liabilities paid; the responder suggests using the deceased proprietor's portal credentials as one option. If no transactions existed, the proprietor's GST registration may be cancelled for no transactions, subject to settlement of dues and downloading the cancellation certificate. If the legal heir is unregistered they must obtain GST registration to succeed the business; an already-registered heir may encounter portal issues when added as authorized signatory. A circular on transfer of input tax credit on death of a proprietor is cited.