Uttarakhand AAR in the case of M/s Rajeev Bansal & Sudarshan Mittal

Case Covered:

M/s Rajeev Bansal & Sudarshan Mittal

Facts of the case:

In the present case, the applicant has sought advance ruling on the applicability of exemption Notification No. 12/2017-Central Tax(Rate) dated 28.06.2017 on “Business Transfer Agreement” as a going concern which consists of transferring under-construction project. Therefore, in terms of said Section 97(2)(b) of the Act, the present application is hereby admitted.

Observations of the court:

From the records, we find that the applicant is carrying on the business of constructing residential/commercial complexes and selling thereof and the applicant firm comes into existence particularly for the said project. Further, on perusal of the sale deed dated 24.20.2019, we find that the applicant has sold the under-construction building, as a whole, situated at village-Manoharpur, Pargana-Jwalapur, District-Hardwar with its all assets and transfer the rights of the same to the buyer including the approved map from the competent authority. The buyer has purchased the under-construction building/business to carry on the same kind of business as the purchaser themselves engaged in constructing residential/ commercial complexes and selling thereof. Further, as on date, we find that there is no series of immediately consecutive transfers of the said business.

In view of the above, we thus observe that the applicant has transferred the business as a going concern to M/s Ronav Infrastructure and it may be treated as supply of services and as per serial no. 2 of the Notification No. 12/2017-Central Tax(Rate) dated 28.06.2017 (as amended from time to time), the same is exempted from levy of GST as on date.

Ruling:

In view of the above discussion we hold that transfer of Business in question shall be treated as a going concern and is exempted from GST as on date in terms of serial no. 2 of Notification No. 12/2017-Central Tax(Rate) dated 28.06.2017 (as amended from time to time).

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