I am the legal heir of my deceased father.
I obtained a new gst registration to continue my existing business.
I have a closing stock of 50 to 60 lks of my fathers firm.
I want to tranfer the stock to the new business and sell them raising bills and paying gst accordingly without availing credit as it is already availed by my father
But now my accountant said that he thinks such transfer is considered as sale and liable to tax.
kindly guide me whether it considered as sale or not?
with valid clauses...
"I want to tranfer the stock to the new business and sell them raising bills and paying gst accordingly without availing credit as it is already availed by my father "
Actually it is not 'transfer as per GST act'.
Read:
"" Supply in the Course or Furtherance of Business
GST is essentially a tax only on commercial transactions.
Hence, only those supplies that are in the course or
furtherance of business qualify as supply under GST. Hence,
any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act. Sale of goods or service even as a vocation is a supply under GST. Therefore, even if a famous politician paints paintings for charity and sells the paintings even as a one-time occurrence, the sale would constitute supply...."" From GST broucher on 'Supply'.
So, as such no clarification issued under (new) rules and regulation, but the stock being inherited by legal heirs, will be out of scope for GST levy, because of no invoicing. ITC claim over the stock is out of question.
Secondly, department would not loose any tax, but will get it on final sale from your end.
Finally, in case you pay any GST (pay to treasury on behalf of deceased person),........ you will be entitled to claim ITC over it. So, you too do not loose anything !!!
CAclubindia
