Question103:
 One of my client has partnership firm and he wants to convert the same into private limited company.
Please provide us relevant sections and implication of GST while transferring assets from firm to Company.


Answer
 Please see Rule 19(1)(d) as follows
(d) where a change in the constitution of any business results in the change of the Permanent Account Number of a registered person, the said person shall apply for fresh registration in FORM GST REG-01:|
As per above rule because the PAN no is changed so you have to take fresh registration
Further as per rule the balance of credit available in iTC account will be carried forward
RULE 41. Transfer of credit on sale, merger, amalgamation, lease or transfer of a business (corresponding section 18)|
(1) A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in 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:
Provided that in the case of demerger, the input tax credit shall be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme. (Reply dt. 25/4/2018)