GST Change in Constitution_Proprietorship into Partnership Firm

Dear Chartered,

Hope all are doing good,

Let me explain my doubt, in my case there is a conversion of GST proprietorship into partnership firm, i have already taken GST Registration in firm name, and planning to raise a invoice in the FIRM Name and i have not closed the proprietorship GST yet due to some reasons, and now my question is can i still raise the invoice in the firm name even though the proprietorship concern GST is not closed and how can is show stock into new firm and make a sale invoice and also what about ITC available in the proprietorship concern can i use it

Thanks in advance

Please suggest me in this

 

Replies (8)
Quick Summary
This discussion addresses the complexities of converting a GST-registered proprietorship into a partnership firm. Key questions revolve around issuing invoices under the new firm name while the proprietorship GST is still active, transferring stock, and utilising any remaining Input Tax Credit (ITC). Advice suggests that stock can be transferred via an invoice, and while direct ITC transfer isn't possible due to PAN changes, it can be offset against liabilities. The business transfer can be formalised through an agreement, allowing for the cancellation of the old proprietorship GST number.

For ITR purposes , you have to raise service invoice and set off in old accounts and new entry in new accounts

If goods are to be sold from firm and business has not been transferred yet then atleast the stock which is to be sold will have to be transferred from proprietorship to partnership via invoice just like ordinary sales.

Can we transfer the business proprietorship into partnership and later can we cancel the GST of Propritorship

Transfer can be done via agreement and after such transfer GST number can be cancelled

GST related benefits like ITC , Cash ledger etc can't be transferred in GST portal since PAN number changes..

So try to offset all benefits against output liability and time the transfer to avail maximum benefits

ITC can be transferred.

And cash from cash ledger can be refunded. So no issues there.

Make all arrangements in such a way that there won't be any practical issues

Thanks for your reply

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