ITC Liability on Capital Goods on death of Proprietor (GTA)

This query is : Open

Rakesh Sharma (Querist)
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28 August 2025 Respected Sir,

One of our client GTA was providing services under forward charges @12% & having 5 Lorries which have purchased in May-2022. But Unfortunately, proprietor died in July-25, now we have applied for closure of this business as family don't want to continue.
Sir, my query is that : should we reverse the ITC taken on above lorries by reducing the ITC amount 5% per quarter basis and we have to pay 35% of ITC availed (ITC Availing time 3 years + 1 Quarter = 13 Quarter i.e. 65%)? Or we can avail any exemption in this exceptional case.

Kindly Advise.

Rakesh Sharma

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