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

Going concern treatment prevents GST on asset transfers when business is transferred; registration and ITC transfer procedures apply.
Where a partnership's assets and liabilities are taken by a buyer as a going concern, the transfer is not a taxable supply and GST is not payable on the sale consideration; the transferee must obtain fresh GST registration if it is a distinct person, and the transferor may transfer unutilised input tax credit to the transferee by furnishing prescribed electronic details and a professional certificate, with acceptance by the transferee and accounting for transferred inputs and capital goods in the transferee's books.