Death of Proprietor-Comments Requested

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Death of Proprietor-Comments Requested
Query (Issue) Started By: - ROHIT GOEL Dated:- 12-8-2020 Last Reply Date:- 12-8-2020 Goods and Services Tax - GST
Got 1 Reply
GST
Dear Sirs, Mrs. X was carrying out business as sole proprietor and registered under GST. In Oct 2017, Mrs. X died and her business was taken over on as-is basis by her son, Mr. Y. w.e.f very next day. However, instead .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of transferring the business to himself on a going concern basis, he continued to run the business under the same PAN and GST number for another year. In the meantime, GST and income tax returns were filed under the credentials of his late mother. By March 2019, he ceased business activity, however the firm had a substantial ITC Balance majorly on account of excess VAT credit carried forward via .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... TRAN-1. Now, Mr. Y intends that this business alongwith its existing assets and liabilities including ITC be transferred to his son i.e. Mr. Z on a going concern basis, owing to old age of Mr. Y. My questions are: a) Could Mr. Y have carried on business upon death of his mother under the same GST and PAN number? b) Can Mr. Y in capacity of legal heir transfer the business on a going concern ba .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sis to his son and claim exemption from GST under relevant CGST (Rate) notification ? c) Can Mr. Y transfer the ITC Balance to GST no. of Mr. Z via Form ITC-02? I found these facts peculiar so wanted to know experts' views regarding the same. Reply By KASTURI SETHI: The Reply: (a). No. It is violation of GST Act. May attract penalty. (b) (c) : Go through the following circular:- Input Ta .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... x Credit (ITC) - Transfer of ITC in case of death of sole proprietor - Clarification Circular No. 96/15/2019-GST, dated 28-3-2019
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X