I have client and he want to transfer his business as going concern to his real niece so what will be implication as per GST & can GST credit if any also be transferred.
Frah Saeed Answered question June 8, 2020
- Transfer of business as a going concern is not subject to GST.
- As regards ITC is concerned, as per Sec 18(3) of the CGST Act, 2017 where inter-alia there is change in constitution of a registered person on account of transfer of business with specific provisions for transfer of liabilities the said registered person shall be allowed to transfer ITC which remains unutilised in his electronic credit ledger to such transferred business by filing of GST ITC-02 as per Rule 41 of the CGST Rules, 2017.
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Frah Saeed Answered question June 8, 2020