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A recent GST registration rejection involving a legal heir taking over a deceased proprietor\u2019s business has raised concerns about procedural difficulties faced by small taxpayers, with chartered accountant Himank Singla flagging the issue and calling for clearer guidelines and a more consistent approach from authorities.<\/p>
According to documents reviewed, the GST department rejected an application for registration filed after the death of a sole proprietor, citing incomplete details related to the earlier GST registration and succession documents. The order, issued on March 6, 2026, stated that the applicant had sought registration after the \u201cunfortunate death of the proprietor,\u201d but had not declared previous GST registration details or submitted adequate proof establishing the legal heir\u2019s right to continue the business.<\/p>
The order further noted that the applicant was required to provide supporting documents such as the death certificate of the earlier proprietor, legal heir certificate or successor certificate, will, and no-objection certificate (NOC) from other co-successors, if any, before the registration could be processed. As these documents were not found on record, the application was rejected under the provisions of the GST Act.<\/p>
Speaking on the issue, CA Himank Singla said the case highlights the practical challenges faced by small businesses and professionals when dealing with procedural requirements, especially in situations involving succession after the death of a proprietor.<\/p>
\u201cThis was a genuine case where the legal heir was trying to obtain GST registration to continue the business under the composition scheme. The applicant had already submitted several documents, but the registration was rejected citing additional requirements that were not clearly asked for earlier,\u201d Singla said.<\/p>