Updated on January 28, 2026 08:14:25 AM
When a sole proprietor (a person who owns and runs a business alone) passes away, their family or legal representatives need to manage the Goods and Services Tax (GST) registration linked to the business. They have two main choices: canceling the GST registration or transferring it to a successor who will continue the business. Each option requires specific steps and documents to follow the law properly. Handling these tasks can be complex, so seeking help from experts like Professional Utilities can make the process easier and ensure everything is done correctly. We specialize in services such as GST registration and filing, making them a valuable resource during this challenging time.
Table of Content
When a sole proprietor registered under GST passes away, the legal heirs or representatives have two possible options:
GST registration Cancellation: If the sole proprietor dies, the representatives or legal heirs must apply to cancel the GST registration by submitting Form GST REG-16 on the GST Portal.
Business Transfer: The representatives or legal heirs are eligible to apply for transfer of GST registration in the event of the death of a sole proprietor by filing an application to the office of the Proper (Jurisdiction) Officer for becoming an authorized signatory.
When a sole proprietor passes away, legal heirs or representatives manage the Goods and Services Tax (GST) registration linked with the business. Depending on whether they choose to cancel the GST registration or transfer the business, specific documentation is required to ensure compliance with GST regulations.
When a sole proprietor passes away, it's important to handle, the Goods and Services Tax (GST) registration associated with their business. The legal heirs or successors have two primary options: canceling the GST registration or transferring the business.
If the decision is to discontinue the business, the GST registration must be canceled. Follow these steps:
If the legal heir or successor chooses to continue the business, obtaining a new Goods and Services Tax (GST) registration is essential. The following steps should be taken:to transfer the business:
When a sole proprietor dies, and their business is taken over by a legal heir or successor, certain tax responsibilities and benefits can be transferred to the new owner.
Conclusion
Taking care of GST registration after the death of a sole proprietor is a crucial responsibility for the family or legal representatives. Whether deciding to cancel the registration or transfer it to a successor, following the correct procedures and gathering the necessary documents is essential to comply with the law. Getting assistance from professionals like Professional Utilities can simplify the process, reduce stress, and help ensure that all legal requirements are met efficiently.
Professional Utilities simplify registrations, licenses, and compliances for your business. With experienced guidance and nationwide support, we help you complete every requirement efficiently and effectively.
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FAQs Related to GST After Death of Proprietor
If the business is continued by the legal heir/representative then the heir/representative is liable for all GST dues. If the business is discontinued after the death, the legal heir is responsible for paying the remaining GST liabilities.
The legal heir must visit the GST department with the death certificate and succession certificate. The GST officer will add the legal heir as the authorized signatory. If the successor is a minor, they cannot be made an authorized signatory.
After the owner’s death, the proprietorship may be closed or transferred to legal heirs. The process includes obtaining legal certificates, transferring assets & liabilities, and applying for transfer of ITC.
The legal heir must apply for a new registration. After approval, they should file FORM GST ITC-02 to transfer ITC to the new entity. ITC-02 can be filed before or after cancellation.
Cancellation can be done using Form GST REG-16 by selecting “death of sole proprietor” as the reason. Both transferor and transferee GSTINs must be mentioned.
The son must submit the death certificate, succession certificate, and required documents to the GST officer. The transfer will be completed as per the GST transfer of business rules.
Yes. Legal heirs can apply for cancellation by filing Form GST REG-16 after the proprietor’s death.
Suo moto cancellation happens when a GST officer cancels a registration due to non-compliance. The taxpayer can apply for Restoration of Suo Moto Cancellation of Registration Possible under GST by completing the necessary formalities.
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