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TMI BlogClarifications in respect of transfer of input tax credit in case of death of sole proprietorX X X X Extracts X X X X X X X X Extracts X X X X ..... ts have been raised whether sub-section (3) of section 18 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (hereinafter referred to as 'CGST Act') provides for transfer of input tax credit which remains unutilized to the transferee in case of death of the sole proprietor. As per sub-rule (1) of rule 41 of the Jammu and Kashmir Goods and Services Rules, 2017 (hereinafter referred to as 'JK ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of subsection (3) of section 18, sub-section (3) of section 22, sub-section (1) of section 85 of the JKGST Act and sub-rule (1) of rule 41 of the JKGST Rules, it is clarified that transfer or change in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor. 3. In case of death of sole proprietor if the business is continued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion on account of death of the proprietor :-Clause (a) of sub-section (1) of section 29 of the JKGST Act, allows the legal heirs in case of death of sole proprietor of a business, to file application for cancelleation 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KGST Act, the transferor and the transferee/successor shall jointly and severally be liable to pay any tax, interest or any penalty due from the transferor in cases of transfer of business "in whole or in part, by sale, gift, lease, leave and license, hire or in any other manner whatsoever". Furthermore, sub-section (1) of section 93 of the JKGST Act provides that where a person, liable to pay tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son. In case of transfer of business on account of death of sole proprietor, the transferee/successor shall file FORM GST ITC-02 in respect of the registration which is required to be cancelled on account of death of the sole proprietor. FORM GST ITC-02 is required to be filed by the transferee/successor before filing the application for cancellation of such registration. Upon acceptance by the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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