TaxTMI 
TaxTMI 
A PRIVATE LIMITED COMPANY TAKE OVERS ONE PARTNERSHIP FIRM. IN GST WHAT ARE THE PROCEDURAL TO ADOPT FOR THE SLUM SALE (TAKE OVER) IF ANY AGREEMENT OR WRITTEN DOCUMENTS. PLEASE PROVIDE IT. ALSO INFORM ABOUT THE TAX( ITC LYING MORE THAN 1.5 LAKHS)
SLUM SALE - GST RELATED AGREEMENTS
10 Feb 2021 
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Transfer of business as a going concern exempt under GST; draft agreements to preserve ITC and procedural safeguards.
The issue concerns GST treatment when a company acquires a partnership by slump sale and whether the transfer qualifies as a Transfer of business as a going concern exempt under GST. Parties must draft agreements and supporting documentation to demonstrate continuity of business, allocate and preserve Input Tax Credit, perform due diligence, and include representations, transitional mechanics and indemnities. Advance rulings and pre GST credit cases inform drafting and procedural steps; tax specialist involvement is recommended to implement filings and safeguards. (AI Summary)
The issue concerns GST treatment when a company acquires a partnership by slump sale and whether the transfer qualifies as a Transfer of business as a going concern exempt under GST. Parties must draft agreements and supporting documentation to demonstrate continuity of business, allocate and preserve Input Tax Credit, perform due diligence, and include representations, transitional mechanics and indemnities. Advance rulings and pre GST credit cases inform drafting and procedural steps; tax specialist involvement is recommended to implement filings and safeguards. (AI Summary)