Partnership Firm - Death of a Partner

[Rajendra Prasad]

AB is a partnership firm in which A and B are the Partners.

There are carrying trading activity. They are having stocks and there are no fixed assets in the firm.

Mr A expired on 31st December 2018. As there is only one partner left in the firm and Mr A family members do not want to join as a partner the firm stand dissolved on 31st December 2018.

Mr B carried the business . He made sales with GST no of the Partnership Firm and filed the GST returns also.

Now as per IT act from st Jan 2019 to 31st March 2019 , it is to be treated as a proprietory concern. But sales were done with GST of the Firm.

Please clarify

1. From 1st January 2019 to 31st March 2019 , I would like to file IT returns as Prop concern eventhough GST is filed with the name of the firm.

2. What are the consequences as per GST Act and IT Act.

3. Now what are the rectification steps to be taken .

AI Summary

GST Penalty Risk for Not Updating Registration After Partnership Dissolution; Amend Certificate to Avoid Issues A partnership firm, AB, dissolved upon the death of partner A on December 31, 2018. Partner B continued business operations using the firm's GST registration and filed returns. The issue arose regarding the treatment of the firm as a proprietorship for income tax purposes from January 1 to March 31, 2019, despite using the firm's GST registration. Responses advised that under the GST Act, a penalty may apply for not updating registration within 30 days of the change. It was recommended to inform the department of the change and amend the registration certificate, as the firm was legally dissolved under the Indian Partnership Act.