Transfer of Business

You need to apply for cancellation of gst registration and need to pay gst on the stock held like sale.cancel all your licenses and business registration so in future you will not be liable for kyour business and you should also terminate all agreement with vendors and with clients so in future you will not be liable for anything.Make an sale agreement with the purchaser of business.

Only the proprietor will change. The business will run as such. Please advise the procedure.

As per Notification 12/2017 CT (R) such transfer of business is Exempted supply in GST.
The Transferor Proprietor need to file Application for cancellation & the reason therein need to provide " Change in Constitution" thereafter it will ask you the GSTN of Transferee , provide the GSTN of Transferee Proprietor.

When the business is transferred as going concern then tax is not required to pay on Stock.

Note : For income tax purpose prepare business transfer deed.

Thanks Mr. Pankaj. In this case do transferor firm need to file any other GST Form apart from form for cancellation of GST no.?

DEAR SSG

NO........ AS ITC 02 IS APPLICABLE IN THIS CASE TO TRF. THE CREDIT BALANCE IN CREDIT LEDGER, BUT SINCE YOU HAVE ALREADY CLEAR THAT THERE IS NO BALANCE IN ELECTRONIC CREDIT LEDGER AVAILABLE SO NOT REQUIRED TO FILE ITC02

 

NOTE : FOR SAFER SIDE CAN INTIMATE DEPARTMENT BY PUTTING MAIL FOR THE SAME