In my case proprietor is passed away. He has three daughters, one daughter wants to continue this business. Stock in hand, but no itc in electronic credit ledger.
My question is how to full fill all legal actions in GST.
1. no itc in electronic credit ledger then how to itc reverse.
2. After death of proprietor of we can't issue sale bill then how to sale material which is in stock
3. If material sold to new proprietory firm today - is this a legal move.
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Death of proprietor
Replies (4)
1. In case of death of proprietor, the old registration needs to get cancelled and new registration has to be obtained.
2. Further, transfer of going concern is exempted under GST and i think GST is not required to be paid and also ITC is not required to be reversed (both Assets & Liabilities are transferred to new registration).
agreed with above answer
Circular 96/15/2019 dt 28th March 2019
1. ITC unutilised in electronic credit ledger can be transferred to successor/ legal heir if they are continuing the business
2. successor should get registered and should mention the reason in REG-01
3. Legal heir/successor has to file application for cancellation on death of a sole-proprietor in REG-16 mentioning as death of "sole-proprietor". The GSTIN of successor should be given to link
4. Any liability of tax, interest, penality of the sole proprietor will become liability of successor.
Ans to ur questions - No need to reverse any ITC as it is treated as transfer of business. No need to issue any sale bill also.
Thank you Sir.
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