GST on sale of factory

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..... GST on sale of factory
Query (Issue) Started By: - Kaustubh Karandikar Dated:- 12-7-2023 Last Reply Date:- 25-7-2023 Goods and Services Tax - GST
Got 3 Replies
GST
XYZ is owner of one factory located at MIDC. XYZ is selling that factory along with all the assets in the factory for a lump sum amount. The factory is situated on land taken on lease from the MIDC. Now, there will be two t .....

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..... ypes of sale for GST purpose: - 1) Sale of factory building along with its assets. (Assets include Plant & Machinery, F&F, electrical installation etc) 2) Sale of leasehold rights of the land on which the factory building is standing. Need clarity regarding GST implications on sale transactions mentioned in both the above points along with valuation methodology to be followed. Reply By Padmana .....

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..... than Kollengode: The Reply: One should try exploring the possibility of treating the transaction as "service by by way of transfer of a going concern" which is exempt under Sl No 2 of Notification No 12/2017-Central Tax Rate: 2 Chapter 99 Services by way of transfer of a going concern, as a whole or an independent part thereof. Nil Nil Reply By Shilpi Jain: The Reply: If there is .....

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..... mere sale of assets it would be liable to GST and would be liable to GST at applicable rate for sale of the assets. Completed land and building - no GST. However, if it is a sale of the business as a going concern, only then it would be exempt. Reply By GUNASEKARAN K: The Reply: Sale of Plant & Machineries - Liable to GST Sale of Factory Building - Transfer of ownership under Indian Registra .....

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..... tion Act subject to other Taxes, such as Stamp Duty Sale of Leasehold rights - If the leasehold rights are treated as land itself, no tax would be applicable on its assignment. On the other hand, if the said leasehold rights being benefit arising of land is treated separate from land, then the same would be treated as a supply which liable to GST Sale of business as going concern - "Service .....

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..... s by way of transfer of a going concern, as a whole or an independent part thereof, attracts nil rate of GST"
Discussion Forum - Knowledge Sharing .....

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