Conversion from Proprietor to Pvt. Ltd. Company

[Kaustubh Karandikar]

XYZ is a proprietory concern. The said concern they want to convert it to Private Limited firm. The present proprietor will remain as one of the directors and few more directors might get added in the new private limited firm. 1) What are the formalities to be observed by XYZ for complying with the GST provisions while carrying out the above conversion?

[YAGAY and SUN]

https://www.indiafilings.com/learn/conversion-of-proprietorship-into-private-limited/

[Kaustubh Karandikar]

Sir, thanks for your quick guidance. but what i need is compliance / liability for XYZ with regard to GST for such conversion.

[Mahir S]

Sir,

Pls refer rule 27 and 41 of CGST Rules and also Section 18 (3) of CGST Act.

As the proprietorship is to be converted into an Pvt Ltd , a new PAN has to be applied for. Further, due to the new PAN, a fresh GST registration needs to be obtained.

Also, the GST registration of the old entity needs to be canceled.

AI Summary

GST registration must be updated when a proprietorship converts to a private limited company, requiring new PAN and cancellation.
Conversion of a sole proprietorship into a private limited company requires applying for a new PAN, obtaining a fresh GST registration in the name of the private limited company, and cancelling the GST registration of the proprietorship, as referenced to Rule 27, Rule 41 of the CGST Rules and Section 18(3) of the CGST Act.