Dear Sir/Madam,
The proprietor of a jewellery shop passed away in the month of April 2025. At the time of death, the business held a gold jewellery stock of approximately 1.5 kg. There is no balance available in the GST credit ledger.
Out of the three legal heirs—two sons and one daughter—one heir intends to take over and continue the business along with the existing stock and other assets.
We seek your guidance on the applicable compliance requirements under GST and other relevant laws to ensure a smooth transition and continuation of the business.
Legal Heir Must Cancel Deceased's GST and Register New One for Business Succession Under GST Rules Following the death of a sole proprietor, the legal heir intending to continue the business must cancel the deceased's GST registration and obtain a new one indicating succession. The transfer of business as a going concern is not treated as a taxable supply, and no input tax credit transfer is needed if none exists. Formal intimation to GST and other regulatory authorities is required. The legal heir must file the deceased's final income tax return and is liable for any outstanding tax, interest, or penalties from the estate. A new bank account should be opened in the successor's name, and relevant succession documents maintained. Legal provisions hold the successor liable for tax dues if the business continues, or the estate liable if the business discontinues. A relevant court ruling affirmed that recovery proceedings may be initiated against legal representatives for unpaid GST liabilities of the deceased. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
