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One partner death

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gyanendra sharma

109 Points Posted on 03 June 2021

Sir if one partner dies in a partnership firm then what should be done in GST (add new partners or close the firm or transfer the capital of that firm to another firm please

Replies (2)

Quick Summary

If a partner dies in a partnership firm, the course of action regarding GST depends heavily on the existing partnership agreement. While options include adding a new partner, closing the firm, or transferring capital, the most practical approach is often to admit a new partner and continue with the existing GST registration to avoid the complexities of starting afresh.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 03 June 2021

Depends on the partnership agreement.

Mostly there is a clause in case of death of partner. The most practical solution will be to add a partner and continue with the same registration rather than opening the new firm and doing everything all over again. But this is subject to partnership agreement.