Case Law Details
In re M/s B. M. Industries (GST AAR Haryana)
The applicant, on merger of his proprietorship firm as a going concern with a private limited company, is not liable to pay tax under CGST/SGST Act on the fixed assets and currents assets including stocks of raw material, semi-finished and finished goods.
The input tax credit available in the credit ledger account proprietorship firm shall be transferred to the respective credit ledger account of the private limited company, consequent upon merger, subject to the provisions of Section 18(3) of the CGST/HGST Act, 2017 and Rule 41 of the CGST/HGST Rules, 2017.
The provisions of Section 18(3) of the CGST/HGST Act, 2017 and Rule 41 of the CGST/HGST Act, 2017, are not applicable to the balance in lying in electronic cash ledger.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, HARYANA
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OFFHAND
The RULING in Rajashri Foods case on question 1. reads::-
“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 “.
A ) Is that in favour of, or adverse to, the Applicant? B) In case adverse, what is unclear is the fact of /why reliance was placed thereon by the applicant in B M Idustries case.
Open to enlightenment should the doubt raised be ill-founded ?!
courtesy