After death of proprietor, if the legal heir is taking over the business, whether transfer of stock will attract GST?
As per point 4(c) of Schedule II of CGST Act, 2017, where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—
(i) the business is transferred as a going concern to another person; or
(ii) the business is carried on by a personal representative who is deemed
to be a taxable person.
As per exception no. (ii) mentioned above the GST is not applicable on transfer of stock.