A client registered for GST with a retail mobile business wants to start a wholesale mobile distribution under a new firm name, though the proprietor and business nature are the same. The core question is whether a new GST number is required or if the existing one can be used. If a new number is issued for a different firm name, it's advised to apply for a new GST number, which will differ from the old one in the 13th digit, to ensure clarity for input tax credit claims by other parties.
My client registered In Gst and duly filing gst returns And nature of Business Retail sale/Purchase of Mobiles.Now january onwards client got distribution work of wholesale mobiles of another company. Now client wanna to maintain different books for existing and new work but nature of the work is same and proprietor is also same..for this client wanna to open a new firm.First question can we use existing gst no in new firm or need to apply new gst no.if yes then how other parties will take input tax ccredit specially when gst no same but firm name different.
16 January 2020
for sole proprietor, no need to apply for new GST number. If you want to do the new business in some new/different trade name, then you can apply for new GST number. It will be the same as the old one except 13th digit.
16 January 2020
okay,But firm name different from existing one.Then under existing gst no how will other party will take input tax credit specially when invoice raised under new firm name.