Transfer of business as going concern allows heirs to continue proprietorship and transfer ITC without reversal when conditions are met.
Legal heirs of a deceased proprietor may either discontinue or continue the proprietorship. On discontinuance, heirs must become authorized signatories, prove heirship, apply for cancellation within thirty days, pay tax equivalent to the higher of ITC on closing stock/capital goods or output tax on such goods, file GSTR 10, and electronic ITC will lapse; heirs' liability for post death GST claims is limited to the estate. On continuance, heirs must obtain fresh registration, transfer ITC via ITC 02, cancel the deceased's registration and file GSTR 10 with no requirement to reverse ITC on inputs and capital goods transferred as part of the going concern; liability for pre death GST remains fully enforceable against heirs. (AI Summary)

Input Tax Credit apportionment raises compliance and attribution questions for financial institutions offering mixed taxable and exempt services.
The law treats interest on lending as exempt while other bank charges are taxable; where supplies are both taxable and exempt, input tax credit must be reversed by apportioning credits between exempt and taxable turnover. To reduce compliance burden, financial institutions may elect a simplified mechanism that allows claiming a fixed portion of eligible input tax credit for inputs, capital goods and services for the fiscal year, with the balance lapsing. The document queries whether inputs directly attributable to other taxable businesses carried on by the institution remain fully claimable or fall within the elective apportionment. (AI Summary)

Legal hierarchy: government tweets give procedural guidance but lack binding force unless formalised as notifications.
The note emphasises the legal hierarchy: the Constitution and statute are paramount, followed by Rules/Notifications and then Circulars; subordinate instruments outside the Act are challengeable. Government-managed tweets and FAQ responses provide rapid procedural guidance but have no independent legal force unless converted into Notifications; FAQs commonly disclaim legal validity. Social media posts should therefore be treated as informational only and cannot override the Act, Rules or Notifications when legal interpretation is required. (AI Summary)

Input Tax Credit availability for out of state hotel services disputed; clarification sought from GST Council and authorities.
Confusion under the dual GST model concerns whether a taxpayer registered in one state can claim input tax credit for hotel and immovable property related services supplied in another state without registering there. Place of supply rules designate the property location as the supply location, producing divergent practitioner views: some require regional registration to claim credit, others maintain the central tax component remains creditable. The issue has been litigated and awaits GST Council clarification. (AI Summary)

TRAN-2 transitional input credit requires procurement evidence and passing benefits via reduced pricing, with compliance scrutiny.
TRAN-2 permits transitional input credit for taxpayers not registered under prior law subject to the proviso's condition that prior duty payment evidence is unavailable; procurement documentation is required though it need not be a prior law tax invoice. Credits must be passed through reduced pricing, filers' details may be shared with the Anti Profiteering Committee, and incorrect claims can lead to credit reversal with interest and discretionary penalties. (AI Summary)