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GST Implication on death of Sole Proprietor
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1. Business is taken over and continued by Legal
Heir

• 1.1 GST Registration by Successor/Legal Heir
• 1.2Adding Legal heir/Successor as Authorised
  Signatory
• 1.3 Transfer of Input Tax Credit to
  Successor/Legal Heir
• 1.4 Transfer of GST Liability to Successor/Legal
  Heir
• 1.5 Cancellation of GST registration of successor

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Business is taken over but not continued by Legal
Heir

• 2.1 Appointment of Authorised Representative
• 2.2 Transfer of GST Liability
• 2.3 Transfer of Input Tax Credit
• 2.4 New GST registration by Legal Heir/Successor
  not required
• 2.5 Cancellation of GST registration of successor

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Conclusion

• Mere cancellation of GST registration on death of
  sole proprietor is not enough. Legal Heirs are
  required to discharge GST on stock and capital
  assets held on the date of cancellation of GST
  registration of deceased proprietors.
  Alternatively, legal heir may take over the
  business of the deceased proprietor and transfer
  GST liability of deceased proprietor and ITC
  lying in his electronic credit ledger to their
  own GSTIN.