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Dissolve of partnership & start proprietory - gst impact

28 March 2018

We are having a Partnership Firm and engaged in trading business and registered with GST, Now on 31/03/2018 the firm will be dissolved and due to remaining one partner it is become proprietory Firm,

Now my question is

1. The existing GST no shall be cancelled and apply for a new GST registration No. under Proprietory Firm ???

2. When the dissolution deed will be made/pass on 31/03/2018 or 02/04/2018 on judicial stamp paper, the value of stamp paper???

Please guide me, thanks

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4 Replies

Pranjal Mishra (128 Points)
Replied 28 March 2018

GST is also levied on Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.

Further, as GST registration is base on you PAN number and when the status of your business changes from partnership firm to sole proprietorship your PAN will change, so you have to opt for fresh registration under GST and cancel that existing one

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Manas Das (1431 Points)
Replied 29 March 2018

You can convert partnership to private limited in thst case there won't be any GST on asset transfer

Ranjit Karmakar (124 Points)
Replied 29 March 2018

Sir thanks for reply, what will be the date of dissolution deed of partner - 02/04/18 is ok ??

Sanjeev Saini (Manager) (45 Points)
Replied 31 January 2019

Sir,, A Partnership having two partners (A+B) and willful dissolution occurs and both want to run business separately, B Agrees to receive machinery as result dissolution in lieu of capital invested , now my question that is GST applicable of such transaction occur due to dissolution means if B agree to keep Machinery in lieu of capital invested........... is that machinery given to B is liable for GST or not,,please update with applicable section.