cancellation of gst due to change in PAN

[BagheAli Khan]

Dear Sir,

we have a business in srinagar, jammu and kashmir, our gstin for the trading company was voluntarily cancelled due to change in pan, we had converted the company from proprietorship to partnership firm. We held stock on the day of cancellation for the old gstin, my question is whether we need to reverse the itc held for the stock, or do we need to invoice the new gstin to nil the stock.

AI Summary

No ITC Reversal Needed for Business Transition; Follow Section 18(3) and Rule 41 with Form ITC-02 A business in Srinagar, Jammu and Kashmir, transitioned from a proprietorship to a partnership, resulting in a GSTIN cancellation due to a PAN change. The query raised concerns about whether to reverse the Input Tax Credit (ITC) for stock held at the time of cancellation or invoice the new GSTIN to nullify the stock. The response clarified that for a transfer of a going concern, there's no need to reverse ITC or invoice the stock. The procedure involves Section 18(3) of the CGST Act, Rule 41 of CGST Rules, and requires filing Form ITC-02, certified by a CA, on the Common Portal System.