Proprietor Transition GST

Currently my firm is in GST composition scheme.My father is the sole proprietor to the firm.we are filing the GST returns for every 3 months.

I want to takeover the firm from next financial year.What are the steps I have to take to change the GST no with my PAN card without disturbing the stock flow & regular retail(B-B) business transactions.

What's the best possible way for smoother transition.Please give your suggestions.

Replies (4)
Quick Summary
Taking over a GST-registered firm from your father requires a clear process to ensure a smooth transition. While you can update the authorised signatory and amend the GST certificate, you cannot directly change the PAN associated with the existing registration. For a complete handover, it's recommended to register a new firm, transfer assets and liabilities as a going concern (which is GST exempt), and then cancel the old registration. Ensure all unutilised input tax credit is transferred using Form ITC-02.

Transitioning the GST registration from your father to yourself as the new proprietor involves a few steps. Let’s break it down:

Update Authorized Signatory:
First, ensure that you are authorized as the new signatory for the GST registration. You’ll need to update the authorized signatory details.
Obtain a Board Resolution that officially authorizes your appointment as the new signatory1.
The outgoing signatory should submit a Letter of Resignation, specifying the effective date of resignation and any necessary handover details1.
The incoming signatory (you) must provide a Consent Letter, expressing your willingness to assume the responsibilities1.
Submit KYC Documents (such as Aadhar card, PAN card, and address proof) for verification1.
Update PAN Card Details:
While you cannot change the PAN number associated with the existing GST registration, you can update the details related to the authorized signatory.
Provide your PAN card details to update the GST records with the new authorized signatory information1.
Amend GST Registration Certificate:
Apply for an amendment to the GST registration certificate, incorporating the details of the new authorized signatory.
This ensures accurate identification of tax-related transactions under your name1.
Smooth Transition:
To avoid disruptions in stock flow and business transactions:
Coordinate with your father to ensure a seamless handover.
Update all relevant records, including invoices, purchase orders, and contracts, with your details.
Inform suppliers, customers, and other stakeholders about the transition.
Continuously monitor the transition process to address any issues promptly.

It is a retail pharmacy and how can I get the board resolution without having directors etc.?

You will have to take a new registration. The concern owned by your father should transfer all assets and liabilities to your registration as a going concern.This is exempt supply as per GST law.As per entry no.2 of Notification No.12/2017-CTR ,”Services by way of transfer of a going concern, as a whole or independent parts thereof “ have been exempted from the GST.Later cancell the registration of the old firm and file final return.The new firm should account all assets, liabilities etc in their books and account the IPT credit also.


The unutilised input tax credit can also be transferred .Transfer shall be allowed to transfer the input tax credit which remains unutilised in terms of Section 18(3) of the CGST Act,2017 read with rule 41 of the CGST Rules,2017. This can be done by filing Form ITC 02.Once the transferee has validated the details entered by the transferor in the Form GST ITC-02, the amount of unutilized input tax credit would be transferred to his electronic credit ledger.


I'm in composition scheme.

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