GST will attract on slump sale for transfer of business assets. On the other hand, as per the definition of CGST Act supply definition includes all transaction with the exception of the transfer of business as going concern concept. However the transfer of business as a going concern concept is a service as per the provision of CGST Act with the exception that this service is exempt as per the notification.
We kindly request you clarify the same about our understanding on GST
CA S Venkata Subrahmanyam
GST Exemption for Slump Sales as Going Concern Supported by Notification No. 12/17-CT(Rate); Interpretations Vary A discussion on the applicability of GST on slump sales highlights that such sales are generally exempt from GST when classified as a transfer of business as a going concern. This exemption is supported by Notification No. 12/17-CT(Rate) dated 28.6.17, which specifies conditions such as the sale being for consideration, the purchaser being registered for GST, and a written agreement acknowledging the business as a going concern. Replies from participants affirm the exemption, with references to Advance Rulings indicating varying interpretations, thus advising caution in application. (AI Summary)
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