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2018 (5) TMI 1651 - AAR - GSTSupply of goods and/or services - Intent to sell unit situated at Hiriyur along with all assets and liabilities - Whether the transaction would amount to supply of goods or supply of services or supply of goods & services? - N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 - Whether the transaction would cover under sl.no.2 of the N/N. 12/2017-Central Tax (Rate) dated 28.06.2017? Held that:- The activity of transfer of a going concern constitutes a supply or service. The Notification further provides 'Nil' rate of tax on such a supply - the transfer of a going concern constitutes a supply of service - A going concern is a concept of accounting and applies to the business of the company as a whole. Transfer of a going concern means transfer of a running business which is capable of being carried on by the purchaser as an independent business. In the instant case, the Applicant has not furnished any documentary evidence to establish that the Applicant is a going concern except their admission that its an ongoing business and the transaction proposes to transfer all the assets and liabilities to the new owner. It implies that the business will continue in the new hands with regularity and a nature of permanency. Ruling: - The transaction of transfer of business as a whole of one of the units of the Applicant in the nature of a going concern amounts to supply of service - The transaction of transfer of one of the units of the Applicant as a going concern is covered under SI. No. 2 of the N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 subject to the condition that the unit is a going concern.
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