TRANSFER OF ONGOING BUSINESS

[NILESH PITALE]

Dear expert

One of my client is carrying proprietary concern and registered under GST , now he intend to transfer his business to other individual ( other than Relatives),

1) Can he Transfer ?

2) In balance sheet Residence flat is there against which Bank CC Liability also there

3) Already GST Notices are issued and Appeal have been filed

4) is assignment deed required

please guide---

AI Summary

Transferring a GST-registered business: Key issues include legality, bank liabilities, GST notices, and assignment deed necessity. A client intends to transfer a proprietary business registered under GST to another individual. Key concerns include the transfer's legality, handling of a residential flat with bank liability, existing GST notices, and the necessity of an assignment deed. Experts advise that transferring a business as a going concern is exempt from GST, referencing Notification No.12/2017-Central Tax. While tax laws do not regulate business transfers, any liabilities may transfer to the buyer. Legal consultation is recommended due to complexities like residential property in business books. The GSTIN cannot be transferred, but the business can be sold via invoice.