Transfer of proprietorship business from Mother to Son

[vaishali raveshiya]

Respected members,

kindly guide me how to deal with in regards to following matter in Income Tax and GST?

A business is carried on in the name of mother will be taken over by/ transfer to her son.

What procedure to be followed in GST,

whether GST is payable ot it is exempt under entry 2 of exemption list?

When to take new GST registration no, before surrender of registration no taken in the name of mother or after cancellation of it?

Whether ITC can be claimed on closing stoch after transfer of business??

Whats other impact in GST and Income Tax??

AI Summary

Business Transfer from Mother to Son: GST Registration Cancellation, New Registration, and ITC Transfer Explained Under Section 29 CGST Act A business transition from a mother to her son raises questions about GST and income tax procedures. The process requires canceling the mother's GST registration using Form REG-16 under Section 29 of the CGST Act, 2017, within 30 days post-transfer. GST is not payable on the transfer of an ongoing business, as it is exempt. The son must obtain a new GST registration and apply for input tax credit transfer using Form GST ITC-02. Authorities may verify any pending dues before processing the cancellation. Both replies confirm these steps and emphasize compliance with GST rules.