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Stock Transfer (Dealer Dead)

J Bilal (54 Points)

13 July 2021

Dear Experts., My client is a composite dealer (Plywood Business). He is dead. His son currently runs the father's shop. Currently shop stock 15,40,000. Son composite dealer. Will GST come when he takes and manages this stock?

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 13 July 2021

Yes GST will arise

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Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 13 July 2021

No..... In term of Notification 12/2017 CT (r) : Services by way of Transfer of going concern as independent or part thereof is Exempted in GST.

As per Section 22(3) any business is transferred on account of succession or otherwise to another person as going concern the Transferee is liable to obtain Registration from the date of transfer.

So ask son to obtain the registration & while Registration process under reason for registration Select " Death of proprietor" .

File application for cancellation of Registration of Father (Transferor) & select reason for cancellation " death of proprietor" thereafter it will ask for GSTN to whom the business is to be transfer or who is going run the business , provide the Son's (Transferee) GSTN therein.

For more details in this regard kindly refer the Circular 96/15/2019 GST

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