Dear Experts
My One of the Client was carrying Proprietary Business, From 1st April 2021 he merged his Proprietary Business with PVT Limited .There is ITC Credit available in the Credit Ledger of Proprietary Business.
Under this Circumstances whether It is necessary to Canceled Proprietary's GST no. because after six month he will start to provide renting business in Proprietary which will be taxable.
Can we Filed ITC-002 (Transfer of ITC) without cancellation of Proprietary's GST no.
If Cancellation is Mandatory then can we canceled Now to get Effect of 1.4.2021
is there any time limit to filed ITC-002
Please Guide.
Guidance Sought on ITC Transfer and GST Registration Post-Merger; Experts Debate GST Number Cancellation Necessity A client merged their proprietary business with a private limited company on April 1, 2021, and seeks guidance on handling the Input Tax Credit (ITC) and Goods and Services Tax (GST) registration. Experts advise that ITC can be transferred using Form GST ITC-02 without a strict time limit. However, opinions differ on whether the GST registration for the dissolved proprietary business must be canceled. Some argue that upon merger, the proprietary business ceases to exist, necessitating cancellation, while others suggest retaining the GST number for potential future use in a new business. The discussion highlights the complexities of GST regulations in mergers. (AI Summary)
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