Death of Proprietor-Comments Requested

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..... Dear Sirs, Mrs. X was carrying out business as sole proprietor and registered under GST. In Oct 2017, Mrs. X died and her business was taken over on as-is basis by her son, Mr. Y. w.e.f very next day. However, instead of transferring the business to himself on a going concern basis, he continued to run the business under the same PAN and GST number for another year. In the meantime, GST and inc .....

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..... ome tax returns were filed under the credentials of his late mother. By March 2019, he ceased business activity, however the firm had a substantial ITC Balance majorly on account of excess VAT credit carried forward via TRAN-1 . Now, Mr. Y intends that this business alongwith its existing assets and liabilities including ITC be transferred to his son i.e. Mr. Z on a going concern basis, owing .....

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..... to old age of Mr. Y. My questions are: a) Could Mr. Y have carried on business upon death of his mother under the same GST and PAN number? b) Can Mr. Y in capacity of legal heir transfer the business on a going concern basis to his son and claim exemption from GST under relevant CGST (Rate) notification ? c) Can Mr. Y transfer the ITC Balance to GST no. of Mr. Z via Form ITC-02 ? I .....

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..... found these facts peculiar so wanted to know experts' views regarding the same. - Reply By KASTURI SETHI - The Reply = (a). No. It is violation of GST Act. May attract penalty. (b) (c) : Go through the following circular:- Input Tax Credit (ITC) - Transfer of ITC in case of death of sole proprietor - Clarificatio n Circular No. 96/15/2019-GST, dated 28-3-2019 - Death of Pro .....

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..... prietor-Comments Requested - Query Started By: - ROHIT GOEL Dated:- 12-8-2020 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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