GST on slump sale

[VENKAT S]

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

AI Summary

Supply of going concern exemption: slump sale attracts nil GST if prescribed written and registration conditions are met.
A slump sale characterized as the supply of a going concern is exempt from GST under the relevant notification provided specified conditions are met: the sale is for consideration; purchaser is registered or required to be registered; parties agree in writing that the supply is a going concern; and a sale of business contract stating the going-concern nature is entered into on or before the date of transfer.