Process under GST after death of Proprietor

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If a sole proprietor registered under GST passes away, their existing GST registration cannot be used by a successor as it's PAN-based. If the business continues, the successor needs a new GST registration and must transfer any remaining Input Tax Credit (ITC). If the successor chooses not to continue the business, they must apply for cancellation of the GST registration, and any remaining ITC will be forfeited.

akshay maloo

akshay maloo (Querist)

09 February 2023 What should be done under GST if the proprietor is no more. Proprietor is registered under GST as the composition dealer.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 February 2023 A GST registration is a PAN-based registration. In case of death of sole proprietor, if the business is intended to be carried on by the successor or legal heir, the successor cannot do so using the same GST registration since he will have a different PAN. Thus, the successor needs to take a new registration if not already registered and also ensure that the balance of ITC lying in the electronic credit ledger of the sole proprietor is transferred to him. Also, the successor has to file the application for cancellation of GST registration on account of death of sole proprietor.

akshay maloo

akshay maloo (Querist)

10 February 2023 Thank You Sir,
but what if the successor does not wants to carry on the business?

akshay maloo

akshay maloo (Querist)

10 February 2023 Thank You Sir, but what if the successor does not wants to carry on the business?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 February 2023 As a legal heir, he can close the business, and file application for cancellation of GST registration. ITC will be lapsed.

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