GST and Death If a person is registered for GST and they die there could be adjustment issues as death causes their GST registration to be cancelled. Example Doug is a handyman and operates as a sole trader. He had just purchased a ute for $19,000 on 30 June 2016 and claimed back $1,727 in GST. Unfortunately, Doug dies on 30 July 2016, sadly not getting to use his new ute too much. Doug’s will leaves all his vehicles to his sister Claudia. The ute’s value is considered to be $17,000 GST inclusive and since there is a disposal the GST claimed will have to be paid back to the ATO in part. The adjustment calculation will be 1/11 x 100% (business use) x $17,000 = $1,545 The executor of the estate will be liable to pay back this amount, $1,545, to the ATO. Who ultimately wears this cost will depend on the terms of the will. It may come out of residue of the recipient of the gift may find any taxes go with the gift – but this will depend on the wording – is this a tax, maybe not. The situation would have been different had Doug been operating the business through a company or trust as these would keep going if he died. However, if the person who took control of the company or trust caused the car to be sold a similar outcome would have resulted.