Answer

1. F

   Facts

   Sec 29(1) allows the legal heir of a deceased proprietor to apply for cancellation. The heir files REG-16 using the heir's own login after registering as a legal heir on the portal. If the heir continues the business, the heir needs a fresh registration in their own name.

2. P

   Provisions and law

   • Sec 29(1), CGST Act 2017You or your legal heirs can ask for cancellation when the business closes, is transferred, changes constitution or is no longer liable to register
   • Rule 20, CGST Rules 2017Application for cancellation by the registered person or legal heir in REG-16
3. A

   Analysis

   A proprietorship is tied to the proprietor's PAN, so it ends with the person. The portal has an option for the legal heir to apply for cancellation of the deceased person's GSTIN. Pending returns up to the date of death and any stock tax still need to be handled, and the heir is liable to that extent under Sec 93. If the heir takes over the business with stock, a new GSTIN and transfer of ITC through ITC-02 may be possible.

4. C

   Conclusion

   1. 1Collect the death certificate and proof of being legal heir.
   2. 2Register on the portal as a new user and choose the option to apply for cancellation as legal heir.
   3. 3File REG-16 with the reason as death of proprietor.
   4. 4File pending returns and GSTR-10 for the deceased's GSTIN.
   5. 5If continuing the business, apply for your own registration.

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