Notification GST Applicability on Transfer of Business Assets as Going Concern or as a Slump Sales or by any other manner --- Schedule 1 read with Schedule 2 and Section 7
Financial Year: 2017
GST APPLICABILITY ON PERMANENT TRANSFER /DISPOSAL OF BUSINESS ASSETS
As per Schedule 1 Point No 1
Following activities will be treated as deemed supplies made or agreed to be made without a consideration.
(1) Permanent transfer
or disposal
of business assets
where input tax credit has been availed
on such assets.
However as per Schedule 2 and Section 7:-
Section 7
Where certain activities or transactions
constitute a supply in accordance with the provisions of sub section (1),
they shall be treated either as
supply of goods or
supply of services as referred to in schedule II
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4. Transfer of business assets
(a) Where goods
forming part of the assets of a business
are transferred or disposed of
by or under the directions of
the person carrying on the business
so as no longer to form part of those assets,
whether or not for a consideration,
such transfer or disposal is a
supply of goods by the person;
(b) Where,
by or under the direction of a person carrying on a business,
goods held or used for the purposes of the business are put to any private use
or are used,
or made available to any person for use,
for any purpose other than a purpose of the business, whether or not for a consideration,
the usage or making available of such goods
is a supply of services;
(c) Where any person
ceases to be a taxable person,
any goods forming part of the assets of 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
Notification No 12/2017 Central Tax Rate (Mega Exemption) Dated 28th June 2017
Follwing Supplies are exempt from CGST.
Point No 2
Services by way of transfer of a going concern, as a whole or an independent part thereof.
Thanks
CA Rahul Gupta