Answer

1. F

   Facts

   No. A company has its own PAN, and GST registration is PAN based, so the company needs a new GSTIN. The proprietor's GSTIN is cancelled after the transfer.

2. P

   Provisions and law

   • Sec 22(3), CGST Act 2017When a business is transferred on succession or otherwise, the transferee must get registered from the date of transfer
   • Rule 8, CGST Rules 2017Application for new registration in REG-01, PAN based and State-wise
   • Rule 19(1), CGST Rules 2017Any change in registration details is filed in REG-14 within 15 days of the change; legal name, places of business and partners or directors need officer approval
3. A

   Analysis

   Rule 19 does not allow a change of PAN through amendment. Sec 22(3) makes the transferee, here the new company, liable to register from the date the business is transferred. Unused ITC in the proprietor's ledger can be moved to the company through ITC-02 where the business is transferred with a provision for transfer of liabilities. Plan the cut-over date so that bills up to that day go from the old GSTIN and later bills from the new one.

4. C

   Conclusion

   1. 1Fix the cut-over date in the business transfer agreement.
   2. 2Apply for the company's GSTIN in REG-01 with the incorporation documents.
   3. 3File ITC-02 from the old GSTIN to transfer unused credit, where eligible.
   4. 4File the last returns and REG-16 for the proprietor's GSTIN.
   5. 5Update customers, suppliers, bank and e-way bill masters with the new GSTIN.

Continuing to bill under the proprietor's GSTIN after the transfer creates mismatches for both businesses.

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