TaxTMI 
TaxTMI 
XYZ (Proprietor) is converting his business from Proprietor to Private Limited Company as a ‘Going Concern’. The effective date of such transfer will be from 01.04.2023. The GST liability of the proprietor for the month of March’23 which is payable on 20th April’23, needs to be paid by the Private Limited Company since the transfer includes transfer of all asset and liabilities including the taxes w.e.f. 01.04.23 or by the Proprietor since the invoices for March’23 are issued by the proprietor?
Transfer of Business
20 Feb 2023 
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GST liability allocation: proprietor files GSTR-3B and records payment as made on behalf of successor company.
The proprietorship should discharge the GST liability for supplies invoiced before the transfer by filing its return and making payment, while treating that payment in the proprietorship's books as made on behalf of the private limited company so the transferee records the tax expense and corresponding credit in its accounts. (AI Summary)
The proprietorship should discharge the GST liability for supplies invoiced before the transfer by filing its return and making payment, while treating that payment in the proprietorship's books as made on behalf of the private limited company so the transferee records the tax expense and corresponding credit in its accounts. (AI Summary)