GST registration status and Balance in ECL in case of merger

[SAFETAB LIFESCIENCE]

Dear Experts,

Please clarify the following points.

1. A partnership firm namely X is taken by a Private Limited Company Y as going concern by taking of business assets and liabilities of X. Both are in different states. After merger/taking over, X will be working in the place where it is already there in the name of X (a unit of Y).

2. What will be GST registration status. What X to do ? To surrender or to amend ?? At what stage this is to be done ??? According to me GST number will be changed and it will be in PAN based of Y.

3. How the closing balance in Electronic ledger can be transferred to buyer's company ledger.

We shall be highly obliged if you could kindly clarify the above please.

AI Summary

Transfer of input tax credit permitted on business transfer; transferee must accept ITC-02 filing to credit electronic ledger.
The transferor must surrender its registration where GSTIN is PAN based and the transferee must register in the State of operation. Unutilised input tax credit is moved by the transferor filing FORM GST ITC-02 with a CA/cost accountant certificate; the transferee accepts the details on the portal and the specified credit is credited to the transferee's electronic credit ledger. Demerger requires apportionment of credit by asset value and transferred inputs and capital goods must be accounted for by the transferee.