GST Implication in case of transfer of business by Prop. to LLP

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... GST Implication in case of transfer of business by Prop. to LLP
Query (Issue) Started By: - ROHIT GOEL Dated:- 18-9-2020 Last Reply Date:- 18-9-2020 Goods and Services Tax - GST
Got 1 Reply
.....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... GST
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 cer .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tain 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 t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ransfer 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 proprietorshi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... p by LLP. IN such scenario if these debtors or advances are not transferred, would it still qualify for GST Exemption? Reply By Ganeshan Kalyani: The Reply: Sir, GST is exempt only if the business .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as a whole or a unit of business is transferred as a going concern. Transfer includes assets as well as liabilities. In your case, in my view, exemption would not be available and tax would be applica .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ble. I welcome the views of my experts collegue.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X