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GST on Stock Available of Deceased Prop. to Transferee

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This query is : Resolved

Vikas (Querist)
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25 September 2019 My father was a prop. of a firm and he died on 23-03-2019 due to sudden heart failure. I registered my self as a successor prop. of the said firm. Now department is asking to pay tax on Stock available on 31-03-2019. I said to department that it is transfer of ownership and my father had not sold the goods to me. And I am regularly doing the business in said firm as present prop. and using same stock to manufacturing the goods.

However, the GST department contented that you should support your explanations etc. with some rules and regulations of GST. So, that we can believe that you are correct and we are not. Kindly help me in this matter. Thanks in Advance.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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26 September 2019 Transfer of Stock is not a supply as per Schedule II.
. Further Services by way of transfer of a going concern, as a whole or an independent part thereof. is a Exempt supply as per Notification No. 12/2017..

Following article is relevant to understand the GST provisions in this case.
https://www.thehindubusinessline.com/economy/gst-authority-clarifies-on-changetransfer-in-ownership-of-sole-proprietorship/article26666133.ece#

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