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

Distinct persons and going concern transfer determine tax invoice, stock treatment, and ITC transfer on GST registration consolidation.
Transfer of assets, stock and business operations between two GST registrations held under the same PAN in the same State is ordinarily a supply between distinct persons, requiring a tax invoice unless the restructuring qualifies as a transfer of a going concern. On cancellation of one registration, the provisions relating to tax on stock and capital goods apply, and unutilised input tax credit can be transferred to the continuing GSTIN only where the transaction fits the prescribed business-transfer mechanism, including filing of Form GST ITC-02 and transfer of liabilities.