ITC reversal of stock in case of death of proprietor

378 views 8 replies
I have a query regarding ITC reversal of business asset (i.e. stock and capital goods) in case of death of proprietor.

If the children of diseased proprietor wants to carry the business then how he can claim the ITC which so reversed (on business asset) in diseased proprietor.
Please help on above query.
Replies (8)

The legal heir will take a new registration. The business will be transferred to the new GSTIN. ITC will then be transferred via ITC-02

Sir my concern is that do we are really suppose to reverse the ITC of stock and capital goods lying on the day of death of proprietor ,where the children of diseased proprietor wants to carry the business.

No you don't need to reverse it.

You will have to transfer it to the new gstin.

Originally posted by : ZAID OFFICIAL
Sir my concern is that do we are really suppose to reverse the ITC of stock and capital goods lying on the day of death of proprietor ,where the children of diseased proprietor wants to carry the business.

U need to intimate the jurisdictional officer abt the death of the propeitor and your intention to carry on the business 

By filing itc 02 the itc can be transferree

YA ITC CAN AVAIL BUT FIRST YOU SHOULD CANCEL GST NO OF DEATH OF PROPRIETOR AND NEW BUSINESS (GST NO) WHICH HIS SON BY CARRY HIS PARENT'S GSTN ITC CREDIT ON HIS NEW GSTIN NO BY APPLICATION IN NEW GSTIN AT APPLICATION AND AFTER SUBMITING ITC02 FORM AFTER APPLICATION A NEW GSTIN.

First new application before itc 02 file
Originally posted by : ZAID OFFICIAL
Sir my concern is that do we are really suppose to reverse the ITC of stock and capital goods lying on the day of death of proprietor ,where the children of diseased proprietor wants to carry the business.

n need to reverse the input tax credit of stock. in case business assets are transferred on going concern basis Para I of Sch I does not apply. In other words permanent transfer or disposal of business assets on death of properietor without consideration to legal heir on which ITC has been claimed does not amount to supply if business is transferred on going concern basis. Similarly provision of section 29(5) also does not apply in terms of notification dated 28.6.17 and Schedule III para 4C also makes an exemption in case of going concern so you are not required to worry.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details