GST issues on Merger

[Kaustubh Karandikar]

‘Company A’ having 100% shareholding in ‘Company B’. Merger of B into A is being carried out. After the merger, B will be closed and only A will exist. The trade name of B will continue to be used as it is known by various customers and suppliers. 1) Will the company need to apply for a new GST registration number? 2) If yes, before or after the merger? 3) IGST refund pending on export sales already made by paying IGST – how will this be transferred to A? 4) Transfer of running balances of GST credit after merger – how will this be transferred to A?

AI Summary

Merger of Company A and B: GST Registration, IGST Refunds, and Credit Transfer Addressed Under Rule 41, CGST Rules 2017. A merger is taking place where 'Company A' holds 100% of 'Company B', and post-merger, only 'Company A' will remain operational while continuing to use 'Company B's trade name. The queries raised include whether a new GST registration is needed, the timing of such registration, the transfer of pending IGST refunds from export sales, and the transfer of GST credit balances. The response suggests referring to Rule 41 of the CGST Rules, 2017, for guidance on these issues.