TaxTMI 
TaxTMI 
GST on slump sale
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....ST on slump sale<br> Query (Issue) Started By: - VENKAT S Dated:- 6-10-2019 Last Reply Date:- 7-10-2019 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>GST will attract on slump sale for transfer of business assets. On the other hand, as per the definition of CGST Act supply definition includes all transaction with the exception of the transfer of business as going concern concept. However....
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.... the transfer of business as a going concern concept is a service as per the provision of CGST Act with the exception that this service is exempt as per the notification. We kindly request you clarify the same about our understanding on GST CA S Venkata Subrahmanyam Reply By Ganeshan Kalyani: The Reply: GST is exempt on slump sale. Reply By atul rathod: The Reply: Slump sale as going concer....
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....n would be treated as supply of service and in rate notification for service as going concern is taxed at nil rate. Therefore there is no gst on slump sale. Reply By KASTURI SETHI: The Reply: Yes. Exempted vide Notification No.12/17-CT(Rate) dated 28.6.17 (serial no.2) I further add as under :- The "supply of a going concern" is exempted from GST subject to the fulfillment of the foll....
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....owing conditions:- (i) The sale is for consideration. (ii) The purchaser is registered or required to be registered for GST. (iii) The parties (seller and purchaser) have agreed in writing that the supply is of a going concern. (iv) Both the parties must enter into an agreement known as a "sale of business contract", on or before the date of the transfer of the going concern busi....
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....ness. This means that a written agreement cannot be entered into after the business has been transferred to the purchaser. (v) The agreement must specify that the supply (i.e. the business) is a going concern before the contracts are exchanged. This is ultra-crucial point because it shows that all concerned parties clearly acknowledge that the business is actually a going concern. Two decisions....
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.... of AARs are given below (One is in favour of the assessee and other is in favour of the Department. So precautions have to be taken. 2019 (24) G.S.T.L. 480 (A.A.R. - GST) = 2019 (4) TMI 1499 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND IN RE : INNOVATIVE TEXTILES LTD. 2019 (20) G.S.T.L. 679 (A.A.R. - GST) = 2018 (12) TMI 767 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : MERCK LIFE SCIENCE....
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