The GSTAT, Thiruvananthapuram Bench, in Vijayan Sahadevan (Deceased) v. The Commissioner of Kerala State GST, Thiruvananthapuram [Appeal No. APL/19/TVP/2026, Final Order No. 03/TVP/KERALA/2026 dated August 21, 2026] set aside the Order-in-Appeal confirming the demand of tax, interest and penalty raised on account of disallowance of Input Tax Credit (“ITC”) under Section 16(4) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) against a deceased proprietor, and held that where the business of the proprietor stood discontinued and the Department neither issued any notice to the legal heir nor caused any inquiry into the estate of the deceased as mandated by Section 93(1)(b) of the CGST Act, the Department has no case to recover any of the dues from the deceased or his legal heir. The Tribunal further held that, on merits, the ITC was in any event admissible under the retrospectively inserted Section 16(5) of the CGST Act, as the returns for FY 2017-18 had been filed well before November 30, 2021.
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