The Central Board of Indirect Taxes and Customs (“CBIC”) vide its Circular No. 96/15/2019-GST dated March 28, 2019 has clarified that transfer or change in ownership of business will include transfer or change in the ownership of business due to death of the sole proprietor. In this case, if the business is continued by any person the ITC which remain un-utilized is allowed to be transferred to the transferee by filing Form GST ITC – 02.
Further the procedure has been laid down in case of death of sole proprietor, and the business is continued by any person being the transferee or successor, in the following manner as stated in the circular. It is also clarified that the transferee / successor shall be liable to pay any tax, interest or any penalty due from the transferor in cases of transfer of business due to death of sole proprietor.