Tax liability on stock transfer due to change in business constitution

[DINESH TIWARI]

Sir

If i change a proprietorship business into the partnership business under GST; there is neither change in Place of Business nor any Closing Stock or Plant and Machinery moved from their places.

So i want to ask that, is there any immediate liability of GST on Plant and machinery and Closing Stock imposes on previous firm.

Please guide me on it.

AI Summary

Going concern treatment: transfer of business as a going concern generally not treated as supply, avoiding immediate GST liability.
Where a change from proprietorship to partnership is treated as transfer of a business as a going concern, it is not a supply and attracts no immediate GST; if the change creates a new taxable person (for example, different PAN or new registration), transfers of closing stock and plant and machinery qualify as supply requiring invoices and tax, with the recipient able to claim input tax credit and the transferor able to move unutilised ITC by filing ITC-02.