Question30: In case of death of proprietor

(i) How the returns can be filed '

(ii) How the legal heir be created and to whom application be addressed and submitted '

(iii) How the ITC and stock be transferred to Legal Heir '

(iv) Who will surrender the GST Registration '

(v) who will sign the above '

Answer: Point wise reply to your latest question is as under;

(i) In case of death of Proprietor, legal heir shall file the return for tax period in which sole proprietor died before filling application of cancellation of registration. Before applying for cancellation, the successor will have to apply for fresh registration under GST.

(ii) Legal Heir means successor, whose name is either mentioned in the will of deceased, if not, can be proved by other documents in which the successor is shown as son/daughter of the deceased. For the purposes of registration under GST such proof is enough. In case of dispute, the succession has to be proved through Civil Court.

(iii) Successor need to furnish details in Form GST REG-16 and need not to pay any tax as it is a going concern and ITC can be carried forward by filing FORM GST ITC- 2.

(iv) Application for surrender of GST registration is to be filed by legal heir manually to concerned authority in FORM GST REG-16..

(v) Legal heir will sign the application of cancellation
 

(Reply dt.16/01/2018)