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GST number changes what abt balance receivable

26 May 2025

if the proprietor of the firm expires and his son carries on business with new gst number. what abt amt receivable. should it be carried on with new gst number

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Rama chary Rachakonda (Master in Accounts & high court Advocate) (8621 Points)
Replied 26 May 2025

When the proprietor of a firm expires and their son carries on the business with a new GST number, the treatment of amounts receivable depends on the specific circumstances and the GST law.

Key Considerations - *Business Continuity*: If the son is continuing the same business with the same assets, liabilities, and operations, the amounts receivable can be transferred to the new GST registration. -

*GST Registration*: Since the son has obtained a new GST registration, the amounts receivable would typically need to be accounted for in the new GST registration. Possible Scenarios -

*Transfer of Amounts Receivable*: If the son is continuing the business with the same customers and vendors, the amounts receivable can be transferred to the new GST registration.

However, this would require proper documentation and accounting to ensure that the amounts are correctly reflected in the new GST registration. -

*Write-Off or Settlement*: Alternatively, the amounts receivable could be written off or settled between the estate of the deceased proprietor and the son's new business. GST Implications -

*GST Liability*: The new GST registration would be liable for GST on the amounts receivable if they are transferred to the new business. -

*Input Tax Credit*: If the amounts receivable include GST, the new business may be eligible to claim input tax credit.

*Maintain Proper Documentation*: Ensure that all transactions, including the transfer of amounts receivable, are properly documented and accounted for in the new GST registration.

By following these steps, the son can ensure a smooth transition of the business and compliance with GST regulations.

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8621 Points)
Replied 26 May 2025

When the proprietor of a firm expires and their son carries on the business with a new GST number, the treatment of amounts receivable depends on the specific circumstances and the GST law.

*GST Registration*: Since the son has obtained a new GST registration, the amounts receivable would typically need to be accounted for in the new GST registration. Possible Scenarios -

*Transfer of Amounts Receivable*: If the son is continuing the business with the same customers and vendors, the amounts receivable can be transferred to the new GST registration.

However, this would require proper documentation and accounting to ensure that the amounts are correctly reflected in the new GST registration. -

*Write-Off or Settlement*: Alternatively, the amounts receivable could be written off or settled between the estate of the deceased proprietor and the son's new business. GST Implications -

*GST Liability*: The new GST registration would be liable for GST on the amounts receivable if they are transferred to the new business. -

*Input Tax Credit*: If the amounts receivable include GST, the new business may be eligible to claim input tax credit.

*Maintain Proper Documentation*: Ensure that all transactions, including the transfer of amounts receivable, are properly documented and accounted for in the new GST registration.

By following these steps, the son can ensure a smooth transition of the business and compliance with GST regulations.

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