An assessee has carried out a Joint Development agreement for construction of a building. The assessee has partially constructed the Building and is out of Money and so decides to sale the project to another another Builder.
A triparti agreement is made between Landower, the assessee and the other Builder.
1. What will be the GST implication on transfer of under-constructed building by the Assessee to the other Builder.
2. Can we claim exemption as (Transfer of business as going Concern).
GST Implications on Selling Under-Construction Building: Is It a 'Transfer of Business as a Going Concern'? An assessee involved in a joint development agreement for constructing a building is facing financial difficulties and decides to sell the partially constructed project to another builder through a tripartite agreement with the landowner. The queries raised concern the Goods and Services Tax (GST) implications of transferring the under-construction building and whether the transaction qualifies for an exemption as a 'transfer of business as a going concern.' A response suggests that further facts and analysis are needed, emphasizing that for such an exemption, all necessary assets and liabilities must be transferred for a lump sum consideration. (AI Summary)
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