Home Forum Goods and Services Tax - GST Month 9 2020 2020 (9) This
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GST Implication in case of transfer of business by Prop. to LLP - Goods and Services Tax - GSTExtract Dear sir, One of our clients is transitioning their business from a proprietorship to LLP. Since they are engaged in software exports, they usually work on advance basis and therefore have certain outstanding advances pending for billing. Further, they also have certain overseas debtors against which export was made earlier. Now GST Law only allows exemption from GST in case of business transfer if done on going concern basis i.e as is where is basis. However, bank would not allow exports against advances being made by LLP and neither allow receipt of exports proceeds of proprietorship by LLP. IN such scenario if these debtors or advances are not transferred, would it still qualify for GST Exemption?
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