Answer

GST

Proprietorship converted to company: new GSTIN needed

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    A GSTIN is linked to the PAN. A company has a new PAN, so it needs a fresh registration, and the proprietorship GSTIN is cancelled under Sec 29(1)(b) for change in constitution. ITC can be moved through ITC-02.

  2. Provisions and law

    • Sec 29(1)(b), CGST Act 2017Cancellation for change in the constitution of business
    • Sec 25(7), CGST Act 2017Every person with a PAN needs a separate registration; GSTIN is PAN based
    • Sec 18(3), CGST Act 2017Transfer of ITC on change in constitution

  3. Analysis

    Amendment through REG-14 works only when the PAN stays the same, such as a partner change in a firm without changing PAN. For a proprietor to company move, apply for a new GSTIN for the company in REG-01, transfer credit by ITC-02, then cancel the old GSTIN. Plan the cut-over date so invoices before it are in the old GSTIN and after it in the new one.

  4. Conclusion

    1. Get the company's PAN and incorporation certificate.
    2. Apply for the company's registration in REG-01.
    3. File ITC-02 from the old GSTIN to the new one.
    4. File REG-16 for the proprietorship with reason change in constitution.
    5. Tell customers the new GSTIN from the cut-over date.

A Savvy can do this for you

Cancellation of registration REG-16 and revocation REG-21

₹2,499

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask