Father wants to transfer business to his son

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Hi I want to transfer my medical business(medical store) to my son who is qualified to run the medical store 

How to transfer the business I am GST register person (, proprietorship) ????

What happens to Electronic Ledger balance ??????

Can my son sell the stock transfer to his new GSTN????

While transferring business I have to pay tax on stock in hand

Replies (5)
get the GST in your name surrendered and obtain the same in your son's name.same way for pan.
the ITC credit will get transferred in the new gstin account in the name of your son and he can utilize the same for GST purpose.. also the shop act needs to be transferred in his name

First of all get your son registered in GST, then check your credit ledger balance if you are in regular scheme. the closing balance of credit ledger may get transferred on succession of business to your son through ITC-02. Before cancellation of your GSTIN make sure that you have filed ITC-02 and your son has registered and obtained new GSTN. 

then your son can accept it online and the credit will show in his credit ledger then apply for cancellation of your GSTIN.

In terms of section 29(5) the business seeking cancellation need to reverse the credit ledger either through debit to cash ledger or through debit to credit ledger but in your case this is not required since you are transferring your business.

Yes.... I agreed to Mr CS Abhishek Goyal.

what treatment of stock in hand and not itc if business transfer by mother to her son  , stock is taxable or not in case of transfer 

Transferring Input is fine but how about stocks in fathers name to sons name ? Some saying the sons concern have to pay gst and purchase his whole assets which is practically not possible as son have to pay several lacs as GST

 

Regards

Prabhu


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