Checking the records for one of our client we came to know the GSTN is of Partnership firm and whereas the client is carrying on the business in the capacity of Proprietorship Firm.
Brief Background is that that during the VAT regime the client was registered as Partnership firm. Due to death of one of the partner the partnership firm cease to exist. The other partner took over the business and continued the business as sole proprietorship. The same was intimated to the VAT department by filing DVAT-07 and DP-1. When the GST regime came GSTN allotted to us was of Partnership firm. We did not notice that GSTN is of partnership firm not of sole Proprietor. On checking on the GST profile in the Constitution of business it is stated Proprietorship but also page of the profile it stated " Alert: The GSTN does not match with Constitution of Business" .
We have been filing the Income Tax return as Sole proprietorship only and the books of accounts also gets audited.
Now the objection has been raised by the CA that the GSTN is of Partnership firm you are carrying the business as sole proprietorship.
When contacted the GST officials the y said that 31 December 2018 was the last date for the correction now nothing can be done. They said to apply for cancellation and register with New registration in the sole proprietor .
my question that what the best solution to this query and how to treat the stock as the value of stock is of 2 crore