GST on Goodwill (takeover of clients)

[Bhavesh Suthar]

1) We are a Company, taking over the clients of another Company. For this takeover of clients, we are paying goodwill to the Company as a consideration. Will this be chargeable under GST and under which section. If no, what is the basis

AI Summary

Company Acquisition of Clients: Is Goodwill Payment Subject to GST Under Section 7? Examining Tax Implications. A company is acquiring clients from another company and paying goodwill as consideration for the takeover. The query seeks to determine if this transaction is subject to Goods and Services Tax (GST) and under which section it would fall. Responses suggest examining the agreement's terms, as GST applies to supplies. One response references a relevant case law, while another questions if it constitutes a slump sale. The broad definition of supply under Section 7, which includes various forms of exchange in business transactions, suggests it may be taxable as a service unless exempt under a specific notification.