How to transfer a stock or input  due to death of proprietor.

Reply—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. Sub-section (3) of section 18 of the CGST Act, allows the registered person to transfer the unutilized input tax credit lying in his electronic credit ledger to the transferee in the manner prescribed in rule 41 of the CGST Rules, where there is specific provision for transfer of liabilities. 

In case of transfer of business on account of Death of sole proprietor, the transferee / successor shall file FORM GST ITC-02 in respect of the registration which is required to be cancelled on account of Death of the sole proprietor. FORM GST ITC-02 is required to be filed by the transferee/successor before filing the application for cancellation of such registration. Upon acceptance by the transferee / successor, the un-utilized input tax credit specified in FORM GST ITC-02 shall be credited to his electronic credit ledger.

Form GST ITC-02 is to be submitted by the transferor along with a certificate issued from practicing chartered Accountant or Cost Accountant certifying that the sale, merger, demerger, amalgamation, lease, transfer of the business has been done along with the transfer of liabilities.