Transfer of assets to partnership firm

[Guest]

Sir

A new partner is added in partnership firm who introduce assets as capital instead of cash

These assets are earlier purchased by him in his proprietorship firm and he claim input on the same.

My question is whether GST applicable on transfer of business assets.

AI Summary

Transferring Assets to Partnership Firm Subject to GST if Not a Going Concern, Exempt Under Notification No. 12/2017-C.T. Rate. A forum participant inquired about the applicability of GST on transferring assets to a partnership firm when a new partner contributes assets instead of cash. The assets were initially purchased by the partner's proprietorship firm, with input credit claimed. Responses clarified that such a transfer is considered a sale and subject to GST. However, the transfer of a business as a going concern is exempt under Notification No. 12/2017-C.T. Rate. Additional references were made to rulings and case laws, emphasizing that transferring a going concern is not taxable under GST, regardless of the business structure.