Transfer of ITC after death of proprietress

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If a business proprietor passes away, their GST Input Tax Credit (ITC) balance cannot be directly transferred. The surviving spouse or legal heir must obtain a new GST registration for the business, citing the proprietor's death. Following this, Form GST ITC-02 needs to be filed to transfer the ITC. A legal heir certificate is generally sufficient for these procedures, avoiding the lengthy process of obtaining a succession certificate.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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19 February 2025 One of my GST client (a lady) had expired leaving a sizable amount of ITC in his GST ledger account. As GSTIN cannot be transferred, his husband want to register the business in his name. Whether his husband can avail the ITC balance lying in his deceased wife's ledger account ? What will be the procedure and formalities for the same

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2025 This can be done by filling out Form GST REG-01, where the application must state “death of the proprietor” as the reason for registering. This filing is essential as it creates the successor's legal position to claim the ITC. Once the successor has gotten GST registration, the next step is to file Form GST ITC-02 for transfer of ITC.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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20 February 2025 Whether Succession Certificate will be required for the purpose ? Whether Legal heir certificate can serve the purpose ? Because to get a succession certificate, waiting period will be quite long .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 February 2025 Legal heir certificate enough.

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