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

AI Summary

GST Applicability on Business Transfer: Going Concern Slump Sale Exempt, New State Registration Needed, ITC Transfer via FORM ITC-02 A partnership firm in State X is being taken over by a private limited company in State Y. The firm inquires about GST applicability on the transfer of business assets and liabilities, believing no GST is due since it's a transfer as a going concern. They also ask about obtaining a new GST registration in State X under the buyer's PAN and transferring the electronic credit ledger balance. The response clarifies that a slump sale on a going concern basis is GST-exempt, separate state registrations are required, and ITC transfer is possible using FORM ITC-02.