“In case of the death of a sole proprietor, what is the treatment of old transactions where services were already rendered but the invoice was not raised and payment was also not received? How should the legal heir handle such a situation, and if the legal heir generates the invoice, should it be done under the deceased person’s GST number or under a new GST registration?”
Sole proprietor dies: cancel old GST, legal heir must obtain new GST and regularize past unbilled supplies Official guidance indicates that upon the death of a sole proprietor the existing GST registration should be cancelled and the legal heir must obtain a new GST registration. For prior supplies where services were rendered but invoices were not issued and payment not received, the legal heir should regularize by issuing invoices under the new GST registration and account for the receipts accordingly, following procedures for transfer/continuity of business set out in the tax rules. (AI Summary)
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