Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Procedure of transfer of going concern business under gst

sheril u (44 Points)

07 June 2018

Reply
Follow
Share

8 Replies

Vinod Babu (24191 Points)
Replied 07 June 2018

When you transfer your business as a going concern, the following things happen:

if you (the seller) are registered for GST, the buyer must register for GST (if they aren't already registered) from the date of the transfer

you must transfer your business records to the buyer (unless you make a written request to GST team to retain your records and your request is approved)

you must not charge GST to the buyer

Upgrade to CAclubindia Pro. Subscribe Now!

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 07 June 2018

It' can be done while cancellation of registration of ongoing business (Transferor)

Login to the GST Portal with your user-ID and password.

Navigate to the Services > Registration > Application for Cancellation of Registrationoption.
select the Tab Reason : there 2 option in your case :

If it's a company select :!
1.Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwise

If it's proprietary Firm Select
2 Change in constitution of business leading to change in PAN:

Enter the date from which registration is to be cancelled.

Provide the GSTIN of the transferee entity under the Details for Transfer, Merger or Change in Constitution section. System will validate the same, and based upon it’s Legal Name of Business, will auto-populate the Trade Name

Enter the date from which registration is to be cancelled (Transfer of business)

Click Save & Submit the Application.

Note : File FORM GST ITC-02, electronically on the Common Portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee:

2 Like

Vinod Babu (24191 Points)
Replied 07 June 2018

Good explanation sir

sheril u (44 Points)
Replied 07 June 2018

Thank you sir

SSG (1936 Points)
Replied 03 August 2018

Originally posted by : Pankaj Rawat
	It' can be done while cancellation of registration of ongoing business (Transferor) Login to the GST Portal with your user-ID and password.Navigate to the Services > Registration > Application for Cancellation of Registrationoption.select the Tab Reason : there 2 option in your case :If it's a company select :!1.Transfer of business on account of amalgamation, merger, demerger, sale, leased or otherwiseIf it's proprietary Firm Select2 Change in constitution of business leading to change in PAN:Enter the date from which registration is to be cancelled.Provide the GSTIN of the transferee entity under the Details for Transfer, Merger or Change in Constitution section. System will validate the same, and based upon it’s Legal Name of Business, will auto-populate the Trade NameEnter the date from which registration is to be cancelled (Transfer of business)Click Save & Submit the Application.Note : File FORM GST ITC-02, electronically on the Common Portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee:

In case of transfer of proprietorship business regsitered under Composition Business, do we need to file ITC-02? Will the transfer of business in GST records will be updated as soon as we file for cancellation of business or it will take more time for change in proprietorship. Please advise.

Upgrade to CAclubindia Pro. Subscribe Now!

Sabita Sahoo (622 Points)
Replied 29 July 2019

Is it necessary to file ITC 02 if no credit is available in credit ledger of the transferor.Is it required CA certificate regarding change in constitution of business?your reply is highly awaited.

Sabita Sahoo (622 Points)
Replied 29 July 2019

Is it necessary to file ITC 02 if no credit is available in credit ledger of the transferor.Is it required CA certificate regarding change in constitution of business?your reply is highly awaited.