Transfer Cash Ladger Balance

[CHETAN CHOTALIYA]

Sir, I have a change of the constitution of the business in GST, proprietor converted to a partnership firm, Now how to the transfer cash ledger balance from proprietor into the firm?

Thanking You

[KASTURI SETHI]

Dear Querist, Go to this link and also meet your jurisdictional GST Range Officer. www.ca-sunilkumar.com/convert-prop-partnership-firm-implementation-gst

[ABHISHEK TRIPATHI]

Dear Sir,

Section 18(3) r/w. Rule 41. You may only be able to transfer ‘credit’.

For credit did you file ITC-02?

Not sure, may be refund is the route you should try for getting the amount lying in the cash ledger.

Kindly seek well researched opinion on this.

[Ganeshan Kalyani]

I agree with the views of the experts.

[CHETAN CHOTALIYA]

For credit did you file ITC-02?

Yes, already filed.

AI Summary

Transfer of cash ledger balance may be disallowed; only input tax credit transfer or refund route typically applies. Change of business constitution from proprietor to partnership does not permit straightforward transfer of the cash ledger balance; GST rules principally allow transfer of input tax credit, and where credit transfer is inapplicable the refund route should be explored. Taxpayers must follow form-based procedures for credit notification and consult the jurisdictional GST officer for compliance and practical steps.