I already asked you a question regarding change of proprietorship business,in this case, I have taken over my father's run business from December 31-2107. The concern was registered in my father's name as proprietor in the GST.We have at least Rs.10,00,000 input tax credit in my father's name, now how can I use the same ITC for my concern after getting it registered under my name. What is the procedure to change the proprietorship without changing the concern name. Please advice.
I have answered question on your change of ownership and GST.
Your father need to create a tax invoice on your name and discharge tax liability on closing stock. You can take input credit through a purchase invoice.
This is the simplest way to transfer credit.
Practically transfer of ownership results in change of GST number too and at this stage of GST implementation, transfer of credit directly at portal level is not possible.
So, what I suggest you is to create a tax invoice from your father to your name, so that his input tax gets settled. Otherwise also he needs to reverse the input credit on unsold stock which will result in tax liability.
You have to get a fresh GST registration, you can give current firm name in trade name while filing application.
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
