Under the GST regime, should the proprietor of a registered firm pass away, succession is allowed to be passed to a legal heir. The heir has up to 30 days to apply for a new registration with documentation showing their entitlement. Upon verification of these documents, the registration will be transferred accordingly.
While the original registration held by the deceased proprietor must be canceled due to the change in ownership, the legal successor can continue trading under a fresh GST registration number. This ensures that the business can function smoothly during the transfer period with the correct registrant details updated in the GST system. Continuity is prioritized through a streamlined process that facilitates the lawful transition of trade to the appropriate inheritor.
The legal successor must register for new GST registration within 30 days of the transfer, submitting necessary documents like a copy of the proprietor's death certificate, ownership proof, succession documents, and more.
Documents required for business succession include the deceased's death certificate, business registration papers, the heir's PAN and Aadhaar details, and relationship evidence between the heir and the late proprietor. Bank information of the inheritor must also be furnished. The registration process ensures the legal transfer of duties to successors. While paperwork is numerous, following guidelines transparently helps heirs take up operations smoothly.
While inheriting a sole proprietorship business requires diligently addressing tax compliance, the legal heir now faces a maze of red tape. If properly navigating registration transfers, ownership can smoothly transition. First, Form GST REG-01 and supporting papers must be submitted to authorize a new licensee. Provided documentation proves accurate, registration will swap names - the original closing yet operations persisting under updated credentials. Though paperwork poses hassles, the legal successor can carry on the entrepreneurial spirit and livelihood and embark on their chapter with a canceled precursor paving their newly registered way.
To obtain a new GST registration in the case where a business has been transferred following the unfortunate demise of the sole proprietor, the following documentation must be furnished:
The issued death certificate will need to be presented to confirm the passing of the previous owner. Additionally, legitimate evidence is expected demonstrating the designation of a lawful heir or representative now responsible for operating the company. This individual's Permanent Account Number and Aadhaar identification must likewise be provided. Also necessary is proof of the physical location of the place of business, such as a utility bill. Bank account details under the heir or representative's name where revenues and dues will be deposited and withdrawn must also be disclosed. Lastly, if still accessible, the original Goods and Services Tax certificate belonging to the late proprietor should be produced.
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