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TMI BlogGST on Goodwill (takeover of clients)X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) We are a Company, taking over the clients of another Company. For this takeover of clients, we are paying goodwill to the Company as a consideration. Will this be chargeable under GST and under which section. If no, what is the basis - Reply By Shilpi Jain - The Reply = This will require examination of the agreement. GST is applicable only on supply. If this transaction of takeover of clients i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s taxable then department may argue that goodwill is nothing but the margin for it. Contract terms are critical. - Reply By KASTURI SETHI - The Reply = Dear Querist, The following case law can help you to understand the issue and concept. 2018 (12) TMI 866 - CESTAT CHENNAI - HYUNDAI MOTOR INDIA LTD. Versus COMMISSIONER OF GST C. EX., CHENNAI - Reply By Ganeshan Kalyani - The Reply = Is it not a sl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ump sale. - Reply By vijay kumar - The Reply = Definition of supply u/s 7 is very wide. It includes exchange, transfer, barter etc.. There is consideration by a person in the course of furtherance of business. He is giving you clients in exchange of consideration. Business definition is inclusive and it includes- supply or acquisition of goods including capital goods and services in connection wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h commencement or closure of business;. (acquisition of service) Definition of service includes all activities other than money and stocks. Accordingly, it seems to be supply of service and is taxable, unless otherwise exempt under Nofn.12/2017-ST . Sn.7 - supply - all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreed to be made for a consideration by a person in the course or furtherance of business; - GST on Goodwill (takeover of clients) - Query Started By: - Bhavesh Suthar Dated:- 25-7-2024 Last Replied Date:- 15-8-2024 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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