ITC claimed in Legal Heir GSTN but the invoice was reflecting in Deceased proprietor GSTN

[Bhavik Sankhla]

That there was death of the proprietor in the month of December 2021. That the New Registration was taken in the name of the proprietor's son being the legal heir and business was transfered to son. That Old registration in the name of father was cancelled wef December 2021.

But the issue was in the month of February 2021.The supplier uploaded the invoice in the old GSTN of deceased father. The ITC was claimed in Legal Heir Son's New GSTN, but the ITC was reflecting GSTR 2A of deceased father's old GSTN.

The Assessee asked supplier to correct the GSTN in the GSTR-1 in February 2021 itself but the supplier was government department did not made the necessary amendments in his GSTR-1.

Department has issued Notice and asking to reverse ITC.

Is the ITC claimed in the legal heir's New GSTN liable to be reversed ?

Thanks in Advance.

AI Summary

ITC Claim Under New GST Registration Challenged Due to Invoice with Old GST Number A business transferred following the death of the original proprietor, with the legal heir obtaining a new GST registration and the old registration cancelled. However, a supplier, a government department, uploaded an invoice under the deceased proprietor's old GST number before the transfer date. The legal heir claimed input tax credit (ITC) under the new GST number, but the ITC appeared in the old GST number's records. Despite requests, the supplier did not amend the invoice details. The tax department issued a notice demanding reversal of the ITC claimed. The key issue is whether the ITC claimed under the legal heir's new GST registration is liable for reversal due to the invoice reflecting the old GST number of the deceased proprietor.