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GST Tax Payment Regarding

290 views 6 replies

Akash

proprietor

82 Points Posted on 20 July 2020

Dear Experts,

In a case, my client who was registered under GST died. His wife got registered under GST (with deceased proprietor registration option) and now we have to transfer stock (amounting rs 50 lac with 12% item) of the previous firm (husband's) to the new one (wife's). Now the tax advocate is saying that they need to pay Tax on transfer of stock as there's nothing left as ITC in their Tax kitty.

Is there any way out to avoid that tax payment of rs 600000 (6 Lac).

Please suggest.

Thanks in advance.

Replies (6)

annu Goyal

1102 Points Posted on 20 July 2020

In case of death of prop. then same is carried forward by legal heir then
sec 18(3) change in ownership you can take benefit of unutillsed ITC by filling form ITC 02(As transfree have to take new registration)before appling cancellation by transferor, then such ITC will available to transfree, Yes on transfer of stock you have to pay tax.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 21 July 2020

No not required to pay tax on transfer of stock , it's Exempted vide Notification 12/2017 CT (R)

Akash

proprietor

82 Points Posted on 21 July 2020

Dear SIr, thanx for your reply. but in the notification I am unable to see and relate the point of transfer of stock. it's not written anywhere. Please suggest

Pankaj Rawat

GST Practitioner

55067 Points Posted on 21 July 2020

UNDER S.NO.2 OF NOTIFICATION 12/2017 CT (R) " SERVICES BY WAY OF TRANSFER OF A GOING CONCERN, AS A WHOLE OR AN INDEPENDENT PART THEREOF" NIL RATED

THUS TRANSFER OF GOING CONCERN INCLUDE ALL THE ASSETS/LIABILITIES & STOCK OF BUSINESS.

Akash

proprietor

82 Points Posted on 21 July 2020

Dear SIr, your knowledge is awesome. everyone else is saying that we have to pay tax in such a case. but your reference is meaningful. Thanx again. May GOD Bless!