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All QuestionsCategory: GST CompliancesGoing Concern GST
Profile photo of Rakesh TayalCA Rakesh Tayal asked 3 years ago

Going Concern GST

In Schedule II the entry at serial number 4 refers to ”Transfer of business assets‟. Transfer of business assets is considered as supply of goods.
Further in part 4(c) of Schedule II, it is provided that when the business is transferred as a going concern then it does not amount to supply of goods.
Further the Notification, No. 12/2017- Central Tax (Rate) dated 28th June 2017 provides “Nil‟ rate of tax on such a supply (Services by way of transfer of a going concern, as a whole or an independent part thereof)
In Our Case Taxpayer is engaged in Restaurant Services paying GST@5% with no ITC, the assessee has transferred all its assets & no liabilities (including all the interiors, equipment, Delivery vehicles and Stock in trade) for a consideration, to another person in Operational State,
Q1:-   Our Query in this regard is whether such a transfer will be termed as the transfer of going concern as per the provisions of the act,

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1 Answers
Profile photo of CA Venu Gopal GellaCA Venu Gopal Gella answered 3 years ago

Trasnfer of a division on a going concern basis is also an exempt. basis the statement, it appears your transaction is an exempted supply