CBIC Clarifies the transfer of Un-Utilized Input Tax Credit in case of death of sole proprietor

Circular No.ES/3/2019-20                                                                                   April 2, 2019

To: Members of the Council

Sub.: CBIC Clarifies the transfer of Un-Utilized Input Tax Credit in case of death of sole proprietor

Dear Member,

Regarding the above issue doubts have been raised whether it is allowed to transfer of input tax credit which remains unutilized to the transferee in case of death of the sole proprietor.

In this context, CBIC has issued Circular No.96/15/2019-GST dated 28^th March, 2019 and clarified that the registered person (transferor of business) can file FORM GST ITC-02 electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.

Furthermore, to ensure uniformity in the implementation of the provisions of the law, CBIC has also clarified Procedure of filing of FORM GST ITC-02 in case of death of the sole proprietor which is given in the above Circular.

Thanking you,

Yours faithfully

S. BALARAJU
EXECUTIVE DIRECTOR