A GST registration application filed by a legal heir to continue the business of a deceased sole proprietor has been rejected by the GST department, highlighting procedural challenges faced by small taxpayers.
In an order issued on March 6, 2026, authorities rejected the application, citing incomplete disclosure of previous GST registration details and absence of key succession documents.
The department said the applicant failed to submit required documents, such as the death certificate of the proprietor, legal heir or succession certificate, will and no-objection certificate (NOC) from other legal heirs, where applicable.
A Chartered Accountant who highlighted the issue said the case reflects practical difficulties faced by small businesses trying to continue operations after the death of a proprietor.
Tax experts note that succession cases under GST often require multiple documents and prior registration details. However, inconsistent communication of requirements can lead to delays or rejection of genuine applications.
Experts have called for clearer guidelines and better coordination between the GST portal and authorities to help legal heirs obtain GST registration without unnecessary procedural hurdles.
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