Treatment of old transaction in case of death of proprietor

[Khushi Kansal]

“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?”

 

AI Summary

Sole proprietor death: legal heir must obtain new GST registration and avoid using the deceased GSTIN when invoicing.
On a sole proprietor's death the existing GSTIN is treated as cancelled and the legal heir must obtain a new GST registration; invoices issued after death must not use the deceased proprietor's GSTIN. Pre death supplies with no invoice should be addressed by the successor under the new GSTIN consistent with the one month invoice timing rule, or, where permitted, by issuing invoices dated before death to avoid use of the cancelled GSTIN. Consult the jurisdictional GST office for local guidance.