Applicability of Transfer of Unconstructed Building

[Punit Agarwal]

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).

[Shilpi Jain]

This would require further facts and analysis to conclude.

[Shilpi Jain]

For exemption as going concern transfer it is necessary that all the assets and liabilities that are required for continuing the business are transferred for a lumpsum consideration,.

AI Summary

Going concern exemption may apply to transfer of under constructed building if all business assets and liabilities transfer for lump sum consideration. The transfer of an under constructed building under a tripartite arrangement raises a fact specific GST question; applicability of the going concern exemption requires transfer of all assets and liabilities necessary to continue the business for a lumpsum consideration.