GST RULES FOR TRANSFER OF BUSINESS

[SAFETAB LIFESCIENCE]

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.

AI Summary

Transfer of business as going concern can exempt GST and permit electronic transfer of input tax credit to transferee.
Asset sales are taxable unless the transaction is a transfer of business as a going concern. Transfer of unutilised input tax credit requires FORM GST ITC-02 filed by the transferor and acceptance by the transferee, who must hold registration for the relevant premises; the transferee must also take over liabilities. The transferor should cancel registration on change of constitution and parties should document procedures in a deed of conversion to address transitional issues and compliance.