Case Law Details
In re M/s Rajeev Bansal and Sudershan Mittal (GST AAR Uttarakhand)
Whether business transfer agreement as a going concern which consists of transferring under construction building project is covered under S. No. 12 of the Notification No. 12/2017 Central Tax (Rate) and its thus exempt from the applicability of GST?
From the record we find that the applicant is carrying on the business of constructing residential/commercial complexes and selling thereof and the applicant firm come into existence particularly for the said project. Further on perusal of the sale deed dated 24.10.2019, we find that the applicant has sold the under-construction building, as a whole, situated at village- Manoharpur, Pargana-Jwalapur, District-Hardwar with its all assets and transfer the rights of the same to the buyer including the approved map from the competent authority. The buyer has purchased the under-construction building/business to carry on the same kind of business as the purchaser themselves engaged in constructing residential/commercial complexes and selling thereof . Further as on date we find that there is no series of immediately consecutive transfers of the said business.
7.7 In view of the above we thus observe that the applicant has transfer the business as a going concern to M/s Ronav Infrastructure and it may treated as supply of services and as per serial no. 2 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time), the same is exempted from levy of GST as on date.
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING, UTTRAKHAND
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