Last Updated : May 25 2019 9:32PM     Screen Reader Access
News Highlights
Modi elected NDA parliamentary party leader; to stake claim to form new govt            CWC rejects Rahul Gandhi's resignation offer            Andhra Pradesh: Jagan Mohan Reddy stakes claim to form govt            Normal life affected in Odisha due to intense heatwave conditions            India wins bronze medal in Archery World Cup Stage III           

Business News

Mar 29, 2019
8:16AM

GST Authority clarifies on change/transfer in ownership of sole proprietorship

Representational Pic
The Goods and Services Tax, GST Authority has clarified that transfer or change in the ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor. In a circular, Central Board of Indirect Taxes and Customs, CBIC said, that the transferee or the successor will be liable to be registered with effect from the date of such transfer or succession, where a business is transferred to another person for any reasons, including death of the proprietor. 

It said, the applicant will be required to mention the reason to obtain registration as death of the proprietor, in the registration form, GST REG-01 to be filed electronically in the common portal. The legal heir of the dead sole proprietor will be required to give application for cancellation of the existing registration. 

The GST Identification Number, GSTIN of transferee to whom the business has been transferred is also required to be mentioned to link the GSTIN of the transferor with the GSTIN of transferee. In case of death of sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as transfer of business. In case of transfer of business on account of death of sole proprietor, the transferee  or successor will file Form GST ITC-02 in respect of the registration to be cancelled. CBIC said, a mechanism has been specified for transferring unutilised input tax credit. 

In an another circular related to verification of applications for grant of new registration, the CBIC said there have been instances when registration gets cancelled due to one reason or any other reason, such businesses prefer to apply for new registration rather than applying for revocation of cancellation of registration. It said, there is possibility that such person might not have furnished requisite returns and not paid tax for the tax periods covered under the old or cancelled registration. 

It added that such persons would be required to pay all liabilities due from them for the relevant period in case they apply for revocation of cancellation of registration. Hence, to avoid payment of the tax liabilities, such persons may be using the route of applying for fresh registration. One can take separate registration on the same PAN in the same State.

CBIC has asked its officials to exercise due caution while processing such applications. It clarified that not applying for revocation of cancellation of registration will be deemed to be a deficiency and could be reason for rejection of application for new registration

PM’s Exclusive Interview to DD News

Live Twitter Feed

Listen News

Morning News 25 (May) Midday News 25 (May) News at Nine 25 (May) Hourly 25 (May) (2000hrs)
समाचार प्रभात 25 (May) दोपहर समाचार 25 (May) समाचार संध्या 25 (May) प्रति घंटा समाचार 25 (May) (1900hrs)
Khabarnama (Mor) 25 (May) Khabrein(Day) 25 (May) Khabrein(Eve) 24 (May)
Aaj Savere 25 (May) Parikrama 25 (May) Lok Ruchi Samachar 19 (May)

Listen Programs

Market Mantra 25 (May) Samayki 25 (May) Sports Scan 25 (May) Spotlight/News Analysis 25 (May)
    Public Speak

    Country wide 28 (Mar) Surkhiyon Mein 4 (Apr) Charcha Ka Vishai Ha 15 (May) Vaad-Samvaad 7 (May) Money Talk 7 (May) Current Affairs 22 (Mar)