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Death of Proprietor in GST

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nkpanchal

CA Practice

76 Points Posted on 17 June 2021

Proprietor has died in May 2021. Should we wait up to 30 June for filing GST Returns or proceed for cancellation of GSTIN ? The Business has been taken over by his legal heir.

Replies (5)

Quick Summary

When a business proprietor dies, their legal heir takes over responsibility for GST compliance. The business should continue filing returns up to the date of death and then apply for a new GSTN in the legal heir's name. Any remaining Input Tax Credit (ITC) can be transferred to the new registration using Form ITC-02. The deceased's GST account should be cancelled, noting the proprietor's death as the reason, and the legal heir should file a GSTR-10 within 90 days of the cancellation order.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 17 June 2021

So his legal heir will be responsible for filing return

Ankit Neema

2742 Points Posted on 17 June 2021

Apply new GSTN in the name of Legal Heir, and in deceased GST account shown as transfer of business to legal heir.

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

14046 Points Posted on 08 July 2021

File return up to the date of death. Obtain new registration in the name of successor. If any utilized ITC remains in the e ledger of the deceased, you can transfer it to new registration through ITC-02. Mention death of prop. as the reason for cancellation and also select death of prop while filing new registration application. After cancellation by appropriate authority you need to file GSTR-10 within 90 days of order of cancellation. You can also declare stock in application for cancellation along with inputs that have been transferred to legal heir on going concern basis. Reversal of ITC held in stock does not apply in case of death of properietor when business is transferred on going concern basis.