GST Procedure – Steps to be followed in case of Death of Sole Proprietor


In case of death of sole proprietor, if the business is intended to be carried on by the successor or legal heir, the successor cannot do so using the same GST registration since he will have a different PAN. Below mentioned steps need to be followed by Successor/Legal Heir:

  • New GST Registration by Legal Heir – Legal Heir will have to take new GST Registration within 30 Days of Death, with reason of registration should be “death of the proprietor”.

  • Get himself registered as Authorised Signatory - Legal Heir has to get himself registered as Authorised Signatory on behalf of the deceased proprietor by submitting the death certificate & succession certificate to proper officer. Proper officer after verification will provide new login Id & password to legal Heir to File ITC-02 & form Cancellation of Registration.

  • Transfer of Input Tax Credit & Tax Liability - Section 18(3) of the CGST Act, 2017 allows the transfer of ITC where the business is being transferred as long as the liabilities of the business are also being transferred in the manner specified in Rule 41. Legal Heir can transfer the ITC by filing FORM GST ITC-02 in the ‘Old’ firm and accepting the same in his own proprietorship firm as ‘New’ firm

  • Cancellation of GST Registration – Legal Heir has to cancel the GSTN of deceased proprietor.

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