Question 112:
 In case of change in constitution:- For example conversion of a prop business into partnership fulfilling all requirements of section 18(3) of CGST Act. Is there any requirement( while taking registration of newly formed partnership) to mention that we are taking registration because of change in constitution. If yes where to mention the same. Partnership deed( having the clause of change) attached with the application for registration will not be the sufficient proof of change in constitution. Will the right of transfer of credit of itc available in the credit ledger of erstwhile prop firm to the newly contituted partnership firm(section 18(3) of CGST Act) be affected had the newly contituted partnership firm not mentioned the fact in registration

Answer
As per S. no. 4 part (c) of Schedule II, GST is not applicable when the business is transferred as a going concern. This transfer can be made to a new company or even to existing company. So there is no need to mentioned it for new registration. But the same will be mentioned for surrendering of old one the process is as follows:-

Transferor before cancellation of registration shall file ITC-02 (with details of CA certficate, GSTIN of transferre e.tc ) on portal by following the path as follows :- Service/ Returns/ITC-forms/ITC-02.
Transferee shall accept the same on GST portal by clicking as follows :- Services/User Services/ "ITC-02- pending for actions". By following the above procedure ITC would transfer in their E- credit ledger. Input and capital goods transferred would also accounted in their books (As per AS).
After that transferor shall submit for cancellation of registration FORM GST REG-16 with in 30 days of occurrence of the event warranting the cancellation (i.e change in constitution of business on 30.3.2018). (Rule 20)
On filling GST REG -16 on portal correctly furnished the date of cancellation of registration, in reason mentioned change in constitution of business(PAN), Correct GSTIN of transferee. (reply dt. 23/05/2018)