TMI BlogCancellation of GST Registration in Case of Death of Sole ProprietorX X X X Extracts X X X X X X X X Extracts X X X X ..... representative shall be liable to pay, out of estate is capable of meeting the charge, the tax, interest, penalty due from such person under this act. whether such tax, interest, penalty has been determined before his death but has remained unpaid or is determined after his death. A legal heir, may transfer the ITC to a new entity in case of death of sole proprietor. In such a case, legal heir needs to get a new registration under GST and transfer the ITC through FORM GST ITC-02 to this new entity. 1. In case of death of sole proprietor, Legal heir has to visit office of the Proper Officer (Jurisdiction Officer) and submit the Death Certificate of the sole proprietor along with the Succession Certificate before the Proper Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her authorized signatory has to submit the application for cancellation and select the Death of Proprietor as reason of Cancellation of Registration and attach sufficient proof. Clarification in respect of transfer of input tax credit in case of death of sole proprietor [ Circular No. 96 / 15 / 2019 -GST ] In case of death of sole proprietor if the business is continued by any person being transferee or successor, the input tax credit which remains un-utilized in the electronic credit ledger is allowed to be transferred to the transferee as per provisions and in the manner stated below Registration liability of the transferee / successor: As per provisions of section 22(3) of the CGST Act, the transferee or the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, where there is specific provision for transfer of liabilities. As per Section 85(1) of the CGST 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, Section 93(1) of the CGST Act provides that where a person, liable to pay tax, interest or penalty under the CGST Act, dies, then the person who continues business after his death, shall be liable to pay tax, interest or penalty due from such person under this Act. It is therefore clarified that the transferee / successor shall be liab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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