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Transter of Business and amendments in GST

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Darshit Rathod

20 Points Posted on 05 August 2020

If a father transfer his business to his son via gift deed, then weather we need to change the proprietor under GSTIN?
Can it be done?
Or new registration is needed to be taken under sons PAN CARD ?

Replies (3)

Quick Summary

When a business is transferred to a son via a gift deed, a new GST registration is generally required under the son's PAN. While a business transfer is exempt under Notification 12/2017 CT (R), existing GSTINs cannot be amended for a change in proprietor. You'll need to apply for a new GSTIN for your son, selecting 'transfer/succession of business' as the reason. Subsequently, surrender the father's GSTIN citing 'change in constitution'. Any remaining Input Tax Credit (ITC) can be transferred to the son's new GSTIN by filing ITC-02 before surrendering the old registration.

Pankaj Rawat

GST Practitioner

20 Points Posted on 05 August 2020

Yes it can be done .
As per Notification 12/2017 CT (R) Transfer of going concern is Exempted.

The business can be transfer from one GSTN to another GSTN , but cannot amend the GSTN for Existing one.

Thus apply new GSTN in Son's name & provide reason for obtaining Registration choose " transfer/Succussion of Business" therein.
& surrender father GSTN & provide reason of surrender " Change in Constitution" thereafter provide the GSTN of Son"s therein.

Note : if any balance is lying in Electronic Credit Ledger can be transfer to Son"s GSTN by filing ITC 02 .
So befor surrender file ITC 02