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TMI BlogTransfer of assets to partnership firmX X X X Extracts X X X X X X X X Extracts X X X X ..... Transfer of assets to partnership firm X X X X Extracts X X X X X X X X Extracts X X X X ..... whether GST applicable on transfer of business assets. Reply By Mahir S: The Reply: The sale of business assets on which input credit is claimed, is also a Supply, irrespective of whether any consideration is received or not. Therefore, GST is applicable to the sale of business assets. Further, the word 'Transfer' used in your query is nothing but Sale. Reply By KARAN VERMA: The Reply: Ok s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir. But whether i am eligible for exemption entry- independent sale of assets as going concern to other business. Reply By Mahir S: The Reply: Yes Karanji, Sale of business as a going concern is exempted by virtue of serial no. 2 of Notification No. 12/2017-C.T. Rate dated 28.06.2017. Reply By Mahir S: The Reply: Also refer to A.A.R.(Uttarakhand) dated 26.03.2019 = 2019 (4) TMI 1499 - AUTHORI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TY FOR ADVANCE RULINGS, UTTARAKHAND in the case of M/s.Innovative Textiles ltd. Reply By KARAN VERMA: The Reply: Thank you sir. Whether proprietor is eligible to merge his business on going concern basis with partnership firm as a partner. Reply By YAGAY andSUN: The Reply: The Andhra Pradesh Authority of Advance Ruling (AAR) ruled that the business of the applicant, Shilpa Medicare Limited = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020 (7) TMI 345 - AUTHORITY FOR ADVANCE RULINGS, ANDHRA PRADESH of Andhra Pradesh unit, as a whole along with the capital assets are being transferred as going concerned to Shilpa Medicare Limited of Karnataka Unit for a monetary consideration amounts to the supply of service on which the Goods and Services Tax (GST) is applicable. The applicant, M/s Shilpa Medicare Limited undertakes Research an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Development work in Active Pharmaceutical Ingredient (API) & formulation molecules and manufacture of formulation products in small quantities for R&D purpose. The business of the applicant, Shilpa Medicare Limited of Andhra Pradesh unit, as a whole along with the capital assets are being transferred as going concerned to Shilpa Medicare Limited of Karnataka Unit for a monetary consideration. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicant had submitted no documentary evidence providing that the transaction is a going concern except for his categorical declaration in the application as such. The applicant has sought advance ruling on the issue of whether the transaction would amount to supply of goods or supply of services or supply of goods & services. The Authority consisting of members D. Ramesh and M. Shreekanth rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the transaction of transferring business along with the capital assets amounts to the supply of service. The other issue raised was Whether the transaction would be covered under Sl.No.2 of the Notification No.12/2017 - Central Tax (Rate) dated June 28, 2017. The Authority ruled that the transaction will be covered under Sl.No.2 of the Notification No.12/2017 - Central Tax (Rate) dated June ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28, 2017. Lastly, can an applicant file GST ITC-02 return and transfer unutilized ITC from Vizianagaram, Andhra Pradesh unit to Bengaluru, Karnataka Unit. The Authority ruled that an applicant can file GST ITC-02 return and transfer unutilized ITC from Vizianagaram, Andhra Pradesh unit to Bengaluru, Karnataka Unit. Reply By Mahir S: The Reply: The transfer of assets while converting an existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proprietorship entity into a new partnership firm is exempted under GST, because such goods/assets are transferred for the continuance of the same business. This exemption has been specified in Schedule II of the CGST Act. This benefit is available when the existing firm ceases to be a taxable person after such conversion. Further, the transfer of a going concern is exempted as per the CGST (Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e) notification 1/2017. Hence, it is clear that the transfer of a going concern shall not be taxable under GST, irrespective of its identity being proprietor or partnership firm Reply By Mahir S: The Reply: Also, the word Going Concern is a vast term and includes firm/company, which can be either proprietor, partnership or Pvt. Reply By Mahir S: The Reply: Reference is also invited to M/s B.M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Industries = 2019 (2) TMI 1080 - AUTHORITY FOR ADVANCE RULING, HARYANA (GST AAR Haryana) case law - - - GST on merger of proprietorship firm as a going concern with a private limited company.
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