transfer to legal heir is a transfer or sale?

"I want to tranfer the stock to the new business and sell them raising bills and paying gst accordingly without availing credit as it is already availed by my father "

Actually it is not 'transfer as per GST act'.

Read: 

"" Supply in the Course or Furtherance of Business
GST is essentially a tax only on commercial transactions.
Hence, only those supplies that are in the course or
furtherance of business qualify as supply under GST. Hence,
any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act. Sale of goods or service even as a vocation is a supply under GST. Therefore, even if a famous politician paints paintings for charity and sells the paintings even as a one-time occurrence, the sale would constitute supply....""   From GST broucher on 'Supply'.

So, as such no clarification issued under (new) rules and regulation, but the stock being inherited by legal heirs, will be out of scope for GST levy, because of no invoicing. ITC claim over the stock is out of question.

Secondly, department would not loose any tax, but will get it on final sale from your end.

Finally, in  case you pay any GST (pay to treasury on behalf of deceased person),........ you will be entitled to claim ITC over it. So, you too do not loose anything !!!

For that get legal formality of inheritance be completed, like Will probate or settlement deed, and include the stock as per that order.

Yes, include all the assets of your father including the current stock in that.

Good Luck.......

I facing similar issue. The inherited business, on the death of the proprietor by his son, includes stock should not be chargeable to GST as it does not compute supply as per GST Schedule 2 point 4 (c) also since the business is in the nature of going concern exempt by Notification No. 12/2017 point 2.

Yes, there is no loss of credit if we show it as sale from deceased Father's proprietory concern to that of Son's by availing the ITC. But it will block heavy amount as the ITC will otherwise be used in the operating cycle; Purchase and Sale, and it may take years to ustilise the complete ITC.

However we are facing the procedural difficulties in transfer the stock and filing the return for the deceased father along with surrender of GSTIN which stock detail. Can you please help with the same?

Detailed issue: https://www.caclubindia.com/forum/gst-on-inheritance-going-concern-and-procedure-463187.asp