Dear Experts,
Ours is a partnership firm (S) registered in State (P) and our other family concern which is a Private Limited Company (A) registered in State (T). Both different entities and the partners of S are not the directors of A but the partners and directors are close relatives.
Now our Pvt Ltd A is going to take over the assets and liabilities of S by itemized sale process. If so what are the impacts in GST. How the closing balance of GST in Electronic ledger can be transferred. Is there any other best modes for transfer of tax GST and IT saving.
Partnership Firm to Transfer Assets to Company; GST Applicable Unless Going Concern; File GST ITC-02 for ITC Transfer. A partnership firm (S) in State P plans to transfer its assets and liabilities to a related Private Limited Company (A) in State T through an itemized sale. The transfer is considered a supply of goods under GST law, thus subject to GST unless the transfer is a going concern, which is exempt. For transferring unutilized input tax credit (ITC), Form GST ITC-02 must be filed. The firm must cancel its registration under the CGST Act, and the company must register in State P to receive ITC. A deed of conversion is recommended to address transitional issues. (AI Summary)
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