9911796707
TMI Blog2020 (7) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... ss. A going concern is a onetime affair made where the business is sold including assets in entirety or an independent part thereof. Even though this transaction does not amount to a supply as per definition, but qualified to be one under the scope of supply as it is backed by the term includes in Section 7(1) of the CGST Act, 2017. Thus, in the broadened interpretation of the term includes , this activity is brought under the scope of supply. Whether ongoing concern is to be treated as supply of goods or supply of services ? - HELD THAT:- The definition of services qualifies anything other than goods as service. In this context it is obvious that the going concern , which was excluded form list of supply of goods as discu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... APGST Act respectively) by M/s Shilpa Medicare Limited.,(hereinafter referred to as applicant), registered under the Goods Services Tax. 2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or APGST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: M/s Shilpa Medicare Limited under takes Research Development work in Active Pharmaceutical Ingredient (API) formulation m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction would amount to supply of goods or supply of services or supply of Goods Services? 2. Whether the transaction would cover SI.No.2 of the Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017? 3. Can we file GST ITC-02 return and transfer unutilised ITC from Vizianagaram, Andhra Pradesh unit to Bengaluru, Karnataka Unit? On Verification of basic information of the applicant, it is observed that the applicant falls under Central jurisdiction, i.e. Superintendent, Vizianagaram South, Vizianagaram CGST Division. Accordingly, the application has been forwarded to the jurisdictional officers and a copy marked to the State tax authorities to offer their remarks as per the Sec. 08(1) of CGST /APGST Act 2017. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue at hand is to decide whether the transaction of the applicant would amount to supply of goods or supply of services or supply of goods services. From the record we find that the business of the applicant i.e., Shilpa Medicare Limited of Andhra Pradesh unit, as a whole along with the capital assets is being transferred as going concern to Shilpa Medicare Limited of Karnataka Unit for a monetary consideration. The applicant had submitted no documentary evidence proving that the transaction is a going concern except for his categorical declaration in the application as such. Taking into consideration the facts as put forth by the applicant, the following series of observations are made to arrive at a conclusion finally. Now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a to taxable person, unless- (i) the business is transferred as a going concern to another person; or (ii) the business is carried on by a personal representative who is deemed to be a taxable person A plain reading of the above clarifies that the transfer of business assets is supply of goods . But in the instant case the business in its entirety is transferred or sold along with capital assets. Thus, it disqualifies the going concern to be grouped under supply of goods as per the above-mentioned clause 4(e). The definition of services under Section 2(102) of CGST Act, 2017 reads as (102) services means a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic provisions for transfer of liabilities, the said registered person shall be allowed to transfer the input tax credit which remains unutilised in his electronic credit ledger to such sold merged, demerged, amalgamated, leased or transferred business in such manner as may be prescribed. Further, Rule 41 of CGST Rules provides as under; Transfer of credit on sale, merger, amalgamation, lease or transfer of a business (1) A registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in FORM GST ITC-02, electronically on the common portal along ..... X X X X Extracts X X X X X X X X Extracts X X X X
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