TaxTMI 
TaxTMI 
XYZ (Proprietory Concern) has sold its entire business to PQR Pvt. Ltd. under slump sale of ongoing concern arrangement i.e., transfer of a whole of business concern as a going concern. For this purpose, Stamp Duty paid by PQR to Govt. of Maharashtra against ‘Business Transfer Agreement’. Is PQR required to pay GST under reverse charge on the stamp duty paid under the category ‘Services provided by Govt.’?
GST under RCM on stamp duty
28 Dec 2021 
4 Replies 
9691 Views Asked by
GST on stamp duty is not payable as stamp duty is a tax, not a taxable supply, so reverse charge does not apply.
Stamp duty paid by a purchaser for a business transfer agreement is a tax, not consideration for a service; accordingly it does not constitute a taxable supply and GST under the reverse charge mechanism is not payable; alternatively, services provided by government would be exempt under the applicable notification even if treated as a supply. (AI Summary)
Stamp duty paid by a purchaser for a business transfer agreement is a tax, not consideration for a service; accordingly it does not constitute a taxable supply and GST under the reverse charge mechanism is not payable; alternatively, services provided by government would be exempt under the applicable notification even if treated as a supply. (AI Summary)