Transfer of business

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This discussion addresses the process of transferring business stock to a new GSTIN when a son inherits his father's business. It clarifies that while the transfer of a going concern is generally considered a supply, it can be exempted under Notification No. 12/2017 CT (Rate) dated 28.06.17. The recommended procedure involves cancelling the father's GSTIN due to death and business transfer, filing ITC-02 for unutilised credit, and transferring assets and stock without generating a tax invoice.

Sabita Sahoo

Sabita Sahoo (Querist)

16 May 2020 A son has continued the business of his father after his death.Now son has obtained another GSTIN.No credit is available in the credit ledger of the father's GSTIN.How the stock of father's business will be transferred to the son's GSTIN.Shall tax invoice will be generated for such transfer or it is exempted as per NN no.12/2017 CT(rate) DT.28.6.17?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 May 2020 See the link for such tranfer.

https://www.google.com/amp/s/www.thehindubusinessline.com/economy/gst-authority-clarifies-on-changetransfer-in-ownership-of-sole-proprietorship/article26666133.ece/amp/

Sabita Sahoo

Sabita Sahoo (Querist)

17 May 2020 ITC 02 is filed for transfer of unutilized ITC. How the stock will be transferred?

c.bakshi

c.bakshi (Expert)

17 May 2020 you need to cancel the registration by choosing option death of father and business transfer to son. automatically, old registration get cancelled and transfer all assets liabilities in the new firm

Sabita Sahoo

Sabita Sahoo (Querist)

17 May 2020 C.bakshi ji stock will automatically transferred? No invoice required but as per schedule I,transfer of business without consideration is supply.

PAWAN KUMAR

PAWAN KUMAR (Expert)

17 May 2020 file cancellation of GSTIN of Fathers. and filed the ITC-02 of all the assets and inputs in stock, since it is the service of trasnsfer of bussion or going concern, but exmpted under noti.no. 12/2017- Central tax rate S.No.2

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