TaxTMI 
TaxTMI 
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
Transfer Cash Ladger Balance
15 Apr 2021 
4 Replies 
1808 Views Asked by
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. (AI Summary)
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. (AI Summary)