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TMI BlogClarifications in respect of transfer of input tax credit in case of death of sole proprietorX X X X Extracts X X X X X X X X Extracts X X X X ..... tor. As per sub-rule (1) of rule 41 of the Jammu and Kashmir Goods and Services Rules, 2017 (hereinafter referred to as JKGST Rules ), registered person (transferor of business) can file FORM GST ITC-01 electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee. Further, clarification has also been sought regarding procedure of filing of FORM GST ITC-02 in case of death of the sole proprietor. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of the law, I, Commissioner, in exercise of powers conferred by section 168 (1) of the JKGST Act, hereby clarify the issue raised as below. 2. Clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he JKGST Act, allows the legal heirs in case of death of sole proprietor of a business, to file application for cancelleation of registration in FORM GST REG-16 electronically on common portal on account of transfer of business for any reason including death of the proprietor. In FORM GST REG-16, reason for cancellation is required to be mentioned as death of sole proprietor . The GSTIN of transferee to whom the business has been transferred is also required to be mentioned to link the GSTIN of the transferor with the GSTIN of transferee. c. Transfer of input tax credit and liability :-In case of death of sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, lease or transfer or change in the ownership of business for any reason. In case of transfer of business on account of death of sole proprietor, the transferee/successor shall file FORM GST ITC-02 in respect of the registration which is required to be cancelled on account of death of the sole proprietor. FORM GST ITC-02 is required to be filed by the transferee/successor before filing the application for cancellation of such registration. Upon acceptance by the transferee/successor, the unutilized input tax credit specified in FORM GST ITC-02 shall be credited to his electronic credit ledger. 4. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the undersigned. (Sd.) P. K. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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