TaxTMI 
TaxTMI 
sir/madam, i would like suggestion and expert opnion on my clients case. my client a scrap dealer died on 10th november 2022, on that day ITC of 6 lakh was available in his credit ledger. He is survived by daughter who is only legal heir. she is married and houswife. His son in law is also dealer of scrap but being turnover below taxable he is unregistered. Can Input Tax credit be transfered to his son in law by transfering stock and filing ITC 02. If yes any special procedure is required.
ITC TRANSFER ON DEATH OF PROPRIETOR
SANTOSH PATIL
Transfer of ITC to Son-in-Law Not Typical; Legal Heir Laws & GST Circulars Advised for Clarification. A client, a scrap dealer, passed away with an Input Tax Credit (ITC) of 6 lakh in his credit ledger. The deceased is survived by a daughter, the sole legal heir, who is a housewife, and a son-in-law, also a scrap dealer but unregistered due to low turnover. The query seeks advice on transferring the ITC to the son-in-law through stock transfer and filing ITC 02. Responses indicate that a son-in-law is not typically considered a legal heir unless specified in a will, and reference is made to a relevant article and a GST Board Circular for further guidance. (AI Summary)