2019 (5) TMI 962 - AAR - GST

Permission for withdrawal of Advance Ruling Application - Classification of supply - supply of goods or supply of services - Sale of Karnataka Hotel as going concern on slump sale basis - Supply in terms of Section 7(1) of the CGST Act 2017 - HELD THAT - The application filed by the Applicant for advance ruling is disposed off as withdrawn.

Summary

Issues involved:
1. Whether the sale of a hotel as a going concern on a slump sale basis can be considered a "Supply" under Section 7(1) of the CGST Act 2017, and if so, whether it would be classified as a supply of goods or services.
2. Whether the transaction can be treated as "Service by way of transfer of going concern" under specific notifications.

Analysis:
1. The Applicant, a hotel management company, sought an advance ruling on the tax implications of selling their Karnataka Hotel as a going concern. They inquired whether this sale could be deemed a "Supply" as per Section 7(1) of the CGST Act 2017 and whether it would be categorized as a supply of goods or services. This issue pertains to the classification of the transaction for GST purposes.

2. Additionally, the Applicant questioned whether the sale could be considered a "Service by way of transfer of going concern" under specific notifications. This query sought clarity on whether the transaction would fall under the provisions outlined in Notification No. 12/2017-Central Tax(Rate) dated 28-06-2017 or other relevant notifications. The Applicant later requested to withdraw the advance ruling application, citing a decision not to pursue it further.

3. The Authority for Advance Rulings, Karnataka, acknowledged the Applicant's withdrawal request and disposed of the application accordingly. The ruling stated that the application for advance ruling was considered withdrawn by the Applicant, bringing closure to the matter without a detailed analysis or decision on the tax implications of the proposed sale of the Karnataka Hotel.