Let’s understand:
The answer is NO
However, if you ignore this, the GST credit transfer process can get stuck.
Here is a common situation: After the death of a proprietor (business owner), the successor (heir) continues the business, but the old GSTIN (GST identification number) cannot be continued.
The successor must get a fresh GST registration using their own PAN.The unutilised ITC (Input Tax Credit) lying in the old GSTIN can be transferred through Form GST ITC-02,
subject to applicable conditions.
Common mistakes: People continue the business but fail to check the ITC balance of the old GSTIN and ignore the transfer process. Therefore, after the death of a proprietor, you must Check the new GST registration. Identify the unutilized ITC. Verify if Form ITC-02 applies to your case. Complete the required documents and compliance processes on time.
Do not ignore this by assuming that the GST credit is automatically lost.