Conversion of Partnership Firm into Private Limited CompanyTransfer of Input Tax CreditCA. Satyadev Purohit

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The Tax Publishers GST--Input Tax Credit Conversion of Partnership Firm into Private Limited Company--Transfer of Input Tax Credit CA. Satyadev Purohit The learned author seeks to analyse the issue as to whether upon conversion of the partnership firm into Private Limited Company, the input tax credit lying in the hand of the partnership firm can be transferred to the transferee company. 1. Statutory provisions regarding transfer of input tax credit on sale, merger, lease or transfer of business Sub-section (3) of section 18 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with transfer of credit on sale, merger, lease or transfer of business. Accordingly, where there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person would be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

Conversion of Partnership Firm into Private Limited Company--Transfer of Input Tax Credit

CA. Satyadev Purohit

The learned author seeks to analyse the issue as to whether upon conversion of the partnership firm into Private Limited Company, the input tax credit lying in the hand of the partnership firm can be transferred to the transferee company.

1. Statutory provisions regarding transfer of input tax credit on sale, merger, lease or transfer of business

Sub-section (3) of section 18 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with transfer of credit on sale, merger, lease or transfer of business. Accordingly, where there is a change in the constitution of a registered person on account of sale, merger, demerger, amalgamation, lease or transfer of the business with the specific provisions for transfer of liabilities, the said registered person would be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business.