GST team raids a dead person, who was doing business for last 1 year.

Firms running even after death of Proprietor. Ignorance or Evasion?

A late businessman was doing business for 11 months in Maharajganj.

GST team had received information that large scale tax evasion was going on in a garment shop in Maharajganj. In last six months, the GST team was collecting evidence by doing Reiki at the said shop on festivals and other occasions.

When the shop was inspected, it was found that the registration of the shop was in the name of the proprietor Shamshul Haq, who had died in March 2022, but no legal action was taken by the family in this regard.

For example, the name of the firm, name of the proprietor, account number etc. have not been changed. The business continued under the old name and address and account number. The firm has issued e-way bills by booking garments in bulk.

At the same time, another establishment was also found at the same place. Another firm was being operated in the name of Shamshul Haq's wife Najra Khatoon. GST has imposed a fine of Rs 5 lakh on this firm. 

Is it wrong to do business in the name of the deceased?

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GST Raid

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Death of Proprietor

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Cancellation of GST Registration

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