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Registration Query

30 May 2020

Sir A properitorship firm if discontine the business then the stock holding with that what the procedure to transfer the stock for new properitorship concern The second question is in partnership firm a partner expired on 19/03/2020 after the lockdown period commenced what is about Statutarory obligation for that under GST act

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3 Replies

Tats Delhi (4 Points)
Replied 30 May 2020

You can transfer input by filing itc 02

Himanshi Garg (Ca Article) (354 Points)
Replied 30 May 2020

Execute a new Partnership Deed, delete the name of Expired partner, insert the name if new partner and upload the new deed in the GST Registration by filing Form REG-14.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 30 May 2020

Yes if you wants to transfer stock without paying GST on same ,need to execute new partnership deed.
while filling cancellation by Transferor (Partnership Firm) , select "Change in Constitution" reason for cancellation thereafter it will ask for the GSTN of Transferee (Proprietor firm) provide the same .

Such transfer is Exempted as per Notification 12/2017 CT (R)

Note : if any balance is lying in Credit ledger of Partnership firm can also transfer to Proprietary firm by filing ITC 02 (Refer Section 18(3) of CGST Act)

** ITC 02 need to be furnished before cancellation is file.