Question 17: 1) A Proprietor /Owner of Business expired in September 2017 whether his legal heir is entitled proprietorship in GST or legal heir has to apply for new registration.

(2 ) Whether in Partnership firm out of 2 partners 1 partner want to retire in that case we have to apply for new reg or continuing partner can running same business as a proprietor.

Answer: 1. According to Rule 19 (1)(d) where a change in the constitution of any business results in the change of the Permanent Account Number of a registered person, the said person shall apply for fresh registration in FORM GST REG-01.

So the legal heir will apply for fresh registration

Legal heir is also required to cancel old GSTN No. as per provisions of section 29(1) of CGST Act, 2017 read with Rule 20 in FORM GST REG-16 in case of death of registered person.

But according to instruction of FORM GST REG-16 in case of death, Application for surrender of GST registration is to be filed by legal heir manually to concerned authority but before applying for cancellation, the successor (Legal heir) will have to first apply for fresh registration under GST.

ITC can be carried forward by filing FORM GST ITC-02 as per Rule 41.

2. In the case of change of partnership to proprietorship there is also change in the constitution of business and results in change In PAN.

Thus the above mentioned provision in point 1 for fresh registration and cancellation of old GSTIN is equally applicable in this case also. (REPLY dt. 26/1/2018)