CARRY OVER OR REFUND OF ITC IN ELECTRONIC CREDIT LEDGER

[SAFETAB LIFESCIENCE]

Dear Experts,

If a Private Limited company [x] is taking over the Assets and Liabilities of a Partnership Firm [Y], what will the procedure in GST act for taking over cum merger of a firm into Private limited company.

The company X is a different state and Y is in different state. After taking over the firm Y, the partners of firm Y will become as share holders of Company X. But after taking over also the firm Y will run in the same state only. Whether the firm Y has to take new GST number with PAN based of Company X. How the balance amount in Electronic Credit Ledger of firm Y can be transferred to Company X account.

Experts, please advise.

AI Summary

Guidance on GST Number and Credit Ledger Transfer in Firm Acquisition by Company: Refer to CGST Rules 41 & 41A. A private limited company, located in a different state, is acquiring the assets and liabilities of a partnership firm from another state. Post-acquisition, the partners of the firm will become shareholders of the company. The firm will continue operating in its original state. The query seeks guidance on whether the firm needs a new GST number under the company's PAN and how to transfer the balance in the firm's Electronic Credit Ledger to the company's account. An expert suggests referring to Rules 41 and 41A of the CGST Rules, 2017, for procedural guidance.