GST APPLICABILITY OF TAKE OVER OF BUSINESS ASSETS AND LIBILITIES

[SAFETAB LIFESCIENCE]

Hi Dear Experts,

We are a Partnership firm in the state of X. Our firm's Business assets and liabilities is to be taken over by a Private Limited company of State Y.

1. Whether GST is to be charged for the Fixed assets to be transferred. We feel since the assets and liabilities are being taken over as going concern basis No GST is to be charged. Presently our Partnership firm's name is SAFETAB LIFE SCIENCE. After taken over, our Company will be named as "Safetab Life Science - a unit of XYZ private Limited". Please clarify.

2. After taken over, new GST is to be taken in the name of buyer XYZ private limited in our state X mapped with buyer's PAN number.... it is right ?

3. How to transfer the available closing balance in Electronic Credit Ledger

[SIVARAMA KUMAR]

Slump sale on going concern basis is exempted under GST.

Separate registration for each state is mandatory.

Transfer of ITC is eligible for the new concern ,FILE FORM ITC-02

AI Summary

GST exemption for going-concern slump sales: no tax on transferred assets; buyer must register and claim ITC via FORM ITC-02.
Transfer of business assets and liabilities as a going concern qualifies as a slump sale exempt from GST. The buyer must obtain separate GST registration in each state where the business operates, linked to the buyer's PAN. Transfer of the seller's Electronic Credit Ledger balance to the new concern is allowable by filing FORM ITC-02.