GST: Transfer of Business in the case of Death of Proprietor

Under GST, in case of the death of the proprietor, the business can be transferred to the legal heir. The legal heir can apply for a new registration within 30 days from the date of the transfer of business. The new registration will be granted based on the documents submitted by the legal heir.

When a proprietorship firm undergoes a transfer of ownership due to the death of the proprietor, the GST registration held in the name of the deceased proprietor needs to be cancelled and a new registration must be obtained by the legal heir or successor.

The legal heir or successor must apply for a new GST registration within 30 days from the date of transfer of business. They must also provide the necessary documents, such as a copy of the death certificate of the proprietor, proof of ownership or succession of the business, and other relevant documents.

The legal heir needs to submit the following documents to transfer the business:

1. Death certificate of the proprietor

2. Certificate of registration of the business

3. PAN card of the legal heir

4. Aadhaar card of the legal heir

5. Proof of relationship of the legal heir with the deceased proprietor

6. Bank account details of the legal heir

The legal heir needs to file the application for the transfer of the business in Form GST REG-01 along with the necessary documents. After the verification of the documents, a new GST registration will be granted in the name of the legal heir, and the old registration of the deceased proprietor will be canceled. The legal heir can continue to carry on the business using the new registration number.