Transfer of Business as a going concern exempt from levy of GST: AAR

In re Innovative Textile Ltd. (GST AAR Uttarakhand)

Whether business transfer agreement as a going concerned on slump sale basis is exempted from the levy of GST in terms of sl. no. 2 of the notification no. 12/2017 central tax (Rate) dated 28-06-2017?

From the record we find that the applicant is carrying on the business of manufacturing of textile yarns, fabrics and garments across India and one of them is situated at B-8, Phase-I, SIDCUL Industrial Park, Sitarganj, Udham Singh Nagar, Uttrakhand and on perusal of the agreement, we find that the applicant has intends to sale the ongoing Sitarganj business along with its all assets & liabilities and the said Sitarganj business is live/operating. The purchaser has purchased the Sitarganj business to carry on the same kind of business. 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 supplied services by way of transfer of Sitarganj Business as a going concern, and as per serial no. 2 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, the same is exempted from levy of GST as on date.

FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING UTTARAKHAND

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