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Death of sole Proprietor

01 November 2019

Hi I have a client who just passed away. He had a Gst number(sole proprietorship) firm. Now his son wants to carry on the business. Tell me how can he continue the same business. Does he has to pay gst on closing stock or he can transfer the same. How can he be added as legal heir in his fathers id. Thank you. Ps succession certificate takes about 1 year to be made.

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3 Replies

MOHIT JOSHI (229 Points)
Replied 01 November 2019

As per section 18(3) you can transfer the ITC

first you have to file REG 16- MENTION IN FORM“death of sole proprietor”

and while filling REG 01 " the reason to obtain registration as “death of the
proprietor”. - for successor

AS per MY Information NO gst is payable on stock due to schedule- 2 is now become just for clarification of goods/service ( gst on closing stock is covered by schedule 2) so it's now irrelevant to lavy tax
any TAX , PENALTY,INTEREST HAVE TO BE PAID BY SUCCESSOR.

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 01 November 2019

Take a new registration for Son's name. After that transfer the Business (father's) as per GST rules...

RAM KUMAR GUPTA (ADJUNCT PROFESSOR AND VISITING FACULTY ON BANKING & FINANCE) (485 Points)
Replied 03 November 2019

Son will have to get succession certificate to get the control of firm. It takes maximum 6 months if there is no dispute amongst legal heirs. Other ways are risky as per law.