Once the partnership firm’s PAN has been obtained, apply for GST registration in form REG-01. The following list of documents needed to apply under GST:
After obtaining all of the above documents, apply for the GST registration for the partnership firm.
While submitting the cancellation for GST registration of proprietorship, the taxpayer has to give the date from which the registration is to be cancelled. Also, while applying for new GST registration of the partnership firm, the taxpayer has to submit the date on which liability to register arises. The taxpayer has to make sure that both the above dates are the same, and this will be the effective date for GST registration of partnership.
Therefore, the proprietorship entity has to file all GST returns till the new GST registration date is announced. The partnership firm has to start filing the GST returns from the date of new GST registration.
After completing the filing of the pending returns, the taxpayer can transfer the unutilised ITC to the partnership firm. Following are the steps for transferring unutilised ITC to the partnership firm:
Once the pending returns were filed, and all tax dues have been paid off, request for the cancellation of the GST registration in Form GST REG 16 citing reasons as ‘Changing the company’s legal framework’. It will also ask for the new partnership firm’s GST number.
This is the whole process of converting a proprietorship firm into a partnership business. It should also be noted that the same procedures mentioned above apply in other cases, where one legal entity converts into another legal form. Such as converting a partnership firm into a proprietorship firm, a private limited/OPC/public limited or vice versa
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