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ITC transfer from Partnership firm to Proprietor ship

Aman Agrawal (Student) (36 Points)

24 January 2021

I have one Partnership firm of manufacturing which is now converted into a proprietor ship..We have registered different GST number for Proprietorship. So we have two registrations now.. 1 for partnership and other one was propritorship.. Now I have to cancel the gst registration of partnership but there are some ITC around 2 lacs Rupees lying in partnership concerns which I want to transfer in propritor.. but Bank account is same as I didn't opened a new account and transfered same account to propritorship.

So how can I transfer ITC to prop. Can I make one single bill? Or various bills less than 2 lakhs..

Kindly please guide me how can I transfer ITC and then cancel the registration of partnership firm

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5 Replies

Thiyagarajan Kandasamy (118 Points)
Replied 24 January 2021

Dear sir used GST ITC 02 form in portal and enter the proprietorship details and submit same will reflect in proprietorship firm and once accepted same will be reflected in electronic credit ledger

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 26 January 2021

In term of Section 18(3), R/w rule 41 ,you can transfer your ITC by filing ITC 02 .

Note : while filing cancellation give reason for cancellation "Transfer of business" & provide the GSTN of Proprietor firm therein.
Do prepare the "Business transfer deed"

In this way you are not liable to raise Taxable Tax Invoice to transfer your ITC as it is Exempted by the Notification 12/2017 CT(r)

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