Clarification in respect of transfer of input tax credit in case of death of sole proprietor

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....ods and Services Rules, 2017 (hereinafter referred to as 'GGST Rules'), the registered person (transferor of business) can file FORM GST ITC 02 electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee. Further, clarification has also been sought regarding procedure of filing of FORM GST ITC-02 in case of death of the sole proprietor. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of the law, the Chief Commissioner of State Tax, in exercise of its powers conferred by section 168 (1) of the GGST Act, hereby clarifies the issues raised as below. 2. Clause (a) of sub-section (1) of secti....

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....f death of sole proprietor of a business, to file application for cancellation of registration in FORM GST REG-16 electronically on common portal on account of transfer of business for any reason including death of the proprietor. In FORM GST REG-16, reason for cancellation is required to be mentioned as "death of sole proprietor". The GSTIN of transferee to whom the business has been transferred is also required to be mentioned to link the GSTIN of the transferor with the GSTIN of transferee. c. Transfer of input tax credit and liability: In case of death of sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as transfer of business. Sub-section (3) of sect....