MERGING OF PARTNERSHIP FIRM TO A PRIVATE LIMITED

[SAFETAB LIFESCIENCE]

Dear Experts,

Please clarify the following our doubts in GST aspects.

1. Ours is a partnership firm which is going to be taken up by a Private Limited Company.

2. The assets and liabilities will be taken by the buyer. Whether we have to charge GST for the sale consideration price.

3. The Partnership ( A) firm will be continued to run the business (manufacturing) in the name of A (unit of B). In such case what is the procedure in GST regarding the GST registration number. Presently A and B are running in different states. Whether B has to take GST number in the state of B.

4. What is the procedure of the available balance in Electronic Credit Ledger to be transfeered to the buyer.

AI Summary

SAFETAB LIFESCIENCE Merger: No GST on Going Concern Transfer, New GST Registration Needed, Input Tax Credit Transferable A partnership firm, SAFETAB LIFESCIENCE, is merging with a private limited company, raising questions about GST implications. The firm queries whether GST should be charged on the sale consideration when assets and liabilities are transferred. Experts clarify that if the business is transferred as a going concern, no GST is payable. The private limited company must obtain a new GST registration due to different PAN numbers and state locations. Input tax credit can be transferred to the buyer under Section 18(3) of the CGST Act, 2017, following the procedure outlined in Rule 41 of the CGST rules.