Taxability on consolidation of Multiple GST number on same PAN into single GST number

[Pradeep Singhi]

Respected Sir/Ma'am,

A tax payer registered in same state having two GST number (GSTN) under same PAN. Now, taxpayer want to cancel one GSTN and consolidate transaction of both GSTN into single remaining GSTN. All the asset and stock of cancelled GSTN is going to be merged into the remaining GSTN. With regards to aforesaid transaction we seek expert advice on below mentioned queries:

1. Whether issuance of tax invoice mandatory for transferring assets/stock between two GSTNs owned by the same person, or does it fall under the exemption for transfer of a going concern?

2. Whether schedule II para 4(c) will be applicable on the aforesaid transaction?

3. Whether provision of S. 29(5) of CGST Act 2017 will be applicable for cancelled GSTN?

4. Whether any remaining ITC balance can be transferred to another GSTN? If yes, how?

Note: Same business is operated from both the GSTN.

AI Summary

GST consolidation of multiple registrations under one PAN raises issues on asset transfer, going concern treatment, and input tax credit migration. GST implications are queried where two registrations under the same PAN in the same State are proposed to be consolidated into one surviving GSTN by cancelling the other registration and merging its assets, stock and business operations. The issues raised concern whether tax invoices are required for the internal transfer of assets and stock, whether the transaction qualifies as a transfer of a going concern, whether Schedule II paragraph 4(c) applies, whether section 29(5) of the CGST Act, 2017 governs the cancelled registration, and whether any remaining input tax credit can be shifted to the surviving GSTN.