“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?”
Legal heir must obtain new GST registration after sole proprietor's death; unbilled prior supplies treated as successor's On death of a sole proprietor, the proprietor's GST registration is treated as cancelled and cannot be used after death; the legal heir should obtain a new GST registration and treat prior unbilled supplies as transactions of the successor. Invoices for services rendered before death but not yet invoiced should be issued by the legal heir under the new GST registration (or, if issued before death within the statutory time-limit, under the deceased's GSTIN). The legal heir should follow applicable time limits for invoicing and consult the local tax office for procedural formalities. (AI Summary)
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