GST on sale of ongoing concern

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....ST on sale of ongoing concern<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 28-12-2021 Last Reply Date:- 27-1-2022 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>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. XYZ had received approx. &#83....

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....77; 50 Crores against this sale. As per Sr. No. 2 of Notification No. 12/2017- Central Tax (Rate) dt. 28.06.2017 as amended, there is an un - conditional exemption from payment of GST for Services by way of transfer of a going concern, as a whole or an independent part thereof. Accordingly, XYZ is not liable to pay GST on the amount of &#8377; 50 Crores received. 1) Whether XYZ is required to prep....

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....are Tax Invoice and pay GST on the goods viz. capital goods, Raw/ Packing Materials and Finished Goods physically transferred to PQR Pvt. Ltd. after the date of sale deed entered in to with PQR? Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Sl. No. 4 (c) of Schedule II of CGST Act, 2017 &quot;where any person ceases to be a taxable person, any goods forming part of the assets o....

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....f any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless- (i) the business is transferred as a going concern to another person; or (ii) the business is carried on by a personal representative who is deemed to be a taxable person. Therefore, the amount of 50 crores received by X....

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....YZ includes the cost of capital goods, Raw/ Packing Materials and Finished Goods physically transferred to PQR Pvt. Ltd. Therefore the exemption granted by Sr. No. 2 of Notification No. 12/2017- Central Tax (Rate) dt. 28.06.2017 as amended is applicable to capital goods, Raw/ Packing Materials and Finished Goods physically transferred to PQR Pvt. Ltd. Reply By Kaustubh Karandikar: The Reply: tha....

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....nks Rajgopalan ji for your detailed reply Reply By Shilpi Jain: The Reply: Only a bill if supply needs to be prepared for the sale of business as going concern. Reply By CAHemanth Kumar: The Reply: Agreed with experts view. Being an exempt supply we need to issue Bill of supply and not tax invoice. Also we need to comply the requirment of rule 42<br> Discussion Forum - Knowledge Sharing ....