The authority of GST clarified that change or transfer in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor.
The authority of Goods and Services Tax (GST) has clarified that change or transfer in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor.
The Central Board of InDirect Taxes and Customs (CBIC) in a circular said, the transferee or the successor will be liable to be registered with effect from the date of such transfer or succession, where a business is transferred to another person for any reasons, including death of the proprietor.
The applicant will be required to mention the reason to obtain registration as death of the proprietor, in the registration form, GST REG-01 to be filed electronically in the common portal, the CBIC said.
It also said, the legal successor of the dead sole proprietor will be required to give application for cancellation of the existing registration.
The GST Identification Number (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.
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 as transfer of business.
In case of transfer of business on account of death of sole proprietor, the transferee or successor will file Form GST ITC-02 in respect of the registration to be cancelled. CBIC said, a mechanism has been specified for transferring unutilised input tax credit.
