Transfer of Input Tax Credit upon death of a sole proprietor enables successor registration and ITC migration to the transferee. Where a sole proprietor dies, the person who continues the business or the legal representative is liable for tax, interest and penalties due from the deceased. Unutilised input tax credit may be transferred to the transferee/successor by filing FORM GST ITC-02 after the transferee obtains registration stating death of proprietor as the reason; upon acceptance, the credit is credited to the transferee's electronic ledger. The transferee and transferor remain jointly and severally liable for tax, interest or penalties arising from the transfer of business, and cancellation of the deceased's registration is applied for via FORM GST REG-16 to link GSTINs.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transfer of Input Tax Credit upon death of a sole proprietor enables successor registration and ITC migration to the transferee.
Where a sole proprietor dies, the person who continues the business or the legal representative is liable for tax, interest and penalties due from the deceased. Unutilised input tax credit may be transferred to the transferee/successor by filing FORM GST ITC-02 after the transferee obtains registration stating death of proprietor as the reason; upon acceptance, the credit is credited to the transferee's electronic ledger. The transferee and transferor remain jointly and severally liable for tax, interest or penalties arising from the transfer of business, and cancellation of the deceased's registration is applied for via FORM GST REG-16 to link GSTINs.
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