TMI Blog2019 (2) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... stered person, by filing Form GST ITC-02, electronically on common portal, can transfer un-utilized input tax credit lying in his electronic credit ledger to the transferee. Here it is to be noted that these provisions pertain to transfer of unutilized input tax credit. These provisions are not applicable to un-utilized balance lying in electronic cash ledger - It is further observed that Section 7 of the CGST/HGST Act, 2017, defines the scope of supply, which includes sale, transfer, barter, exchange made for a consideration in the course of or for furtherance of business and also provides vide clause (d) to sub-section (1) that the activities to be treated as supply of goods or services as referred to in Schedule ll. As per Para 4(c) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After merger, M/S B. M. Industries shall apply for cancellation of registration in form GST-REG-16 , within 30 days as prescribed. 2. The applicant submits that as per Rule 41 of CGST/HGST Rules and Section 29 of the CGST/HGST Act, tax is not payable in case of merger of proprietorship firm with company, in the manner, as mentioned above and consequent upon merger unutilized input tax credit of the Applicant firm will be available to M/S Bimal Aluminum Pvt. Ltd., Yamunanagar. 3. Questions on which ruling has been sought by the applicant, are as under: a) Whether the applicant is liable to pay tax under CGST/SGST Act, on merger of his proprietorship firm as a going concern with a private limited company on the fixed assets and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le involving transferring of all assets liabilities to M/s. Bimal Aluminium Pvt. Ltd and not for part of the assets. (b). Section 7 of the CGST Act 2017 defines the scope of supply. As per sub section 1, the supply includes sale, transfer, barter, exchange made for a consideration in the course of or for furtherance of business. The transfer of the applicant s business as a going concern to a private limited company is not in the ordinary course of business or for the furtherance of business. The selling of business is not the business of the applicant. It, in fact, cannot be called a transaction in the normal course of business or for furtherance of business. It is an extraordinary activity which shall bring the business to an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing No KAR ADRG 06 of 2018 Dated 23/04/2018 = 2018 (5) TMI 1651 - AUTHORITY FOR ADVANCE RULING - KARNATAKA , in the case of Rajashri Foods (P) Ltd. The applicant has submitted that the facts and circumstances of the applicant s case are identical to the facts circumstances of the Rajashri foods (P) Ltd case , hence the ruling is fully applicable to the applicant s case. The Ld. Advance Ruling Authority, Karnataka has given the ruling that:- 1. 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. 2. The transactions of transfer of one of the units of the Applicant as a going concern is covered under Sr. No 2 of the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e input tax credit which remains unutilised in his electronic credit ledger to such sold, merged, demerged, amalgamated, leased or transferred business in such manner as may be prescribed. Further, Rule 41 of the CGST/HGST Rules, 2017, provides as under: RULE 41. Transfer of credit on sale, merger, amalgamation, lease or transfer of a business : (1) A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in FORM GST ITC-02 , electronically on the common portal along with a request for transfer of unutilized input tax credit lying in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a consideration in the course of or for furtherance of business and also provides vide clause (d) to sub-section (1) that the activities to be treated as supply of goods or services as referred to in Schedule ll. As per Schedule II of the CGST/HGST Act 2017, para 4 pertain to transfer of business assets and clause (c) of para 4, provides as under: (a) 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 taxable person, unless- (i) The business is transferred as a going concern to another person ; or (ii) The business is carried on by a pers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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