Transfer of business

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2018 I AM A COMPOSITION DEALER AND PROPRIETOR IN MY FIRM. DUE TO HEALTH PROBLEM I WANT MY SON TO TAKE OVER MY BUSINESS AND WANT MAKE HIM PROPRIETOR OF MY FIRM. WHAT IS THE DUE PROCESS FOR ALL THIS. I HAVE ALREADY APPLIED FOR THE NEW GST NO IN THE NAME OF MY SON. THANKS IN ADVANCE

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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25 March 2018 YOU have to clear all your pending liabilities in your composition firm and then you may apply for cancellation online.

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2018 PLEASE ELABORATE PENDING LIABILITIES??

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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02 August 2025 Sure! When someone mentions **“pending liabilities”** in the context of transferring a business under GST (especially for a composition dealer), they generally mean:

### Pending Liabilities may include:

1. **Unpaid GST dues:**
Any GST tax, interest, penalty, or late fees that your firm owes up to the date of transfer.

2. **Pending GST returns:**
All GST returns (monthly/quarterly/annual) filed till the last period before cancellation should be filed properly.

3. **Any other statutory dues:**
If applicable, any dues related to other laws (like income tax, professional tax, etc.) must be cleared.

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### So, before your son can take over and become the proprietor:

* You need to **pay all GST tax dues and file all pending GST returns** under your GSTIN.
* Then, you apply for **cancellation of your existing GST registration** (since the proprietorship is transferring to a new proprietor).
* Your son then continues business under **his new GST registration** (which you mentioned you already applied for).

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### Summary of steps:

1. **Clear all GST dues and file all returns** for your GSTIN.
2. Apply for **cancellation of GST registration** in your name via the GST portal.
3. Your son should continue the business under the **new GST registration** in his name.
4. If needed, update any other licenses or registrations accordingly.

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Let me know if you want, I can guide you step-by-step on how to file cancellation or handle GST returns!

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