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GST Applicable on Purchase (Resale) of Shop?

Mohan Bagalkot (Tax Consultant) (233 Points)

30 May 2018

One of my client purchasing Shop from Unregistered Person is GST Applicable?

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3 Replies

CMA Bhavya (Assistant Manager Finance) (862 Points)
Replied 30 May 2018

Dear Mohanji,

(17) “business” includes––

any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
provision by a club, association, society, or any such body (for a subscripttion or any other consideration) of the facilities or benefits to its members;
admission, for a consideration, of persons to any premises;
services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
services provided by a race club by way of totalisator or a licence to book maker in such club ; and
any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;

In my view it is an business furtherence or extention by purchasing/re-sale. GST is applicable.

regards,

Bhavya.P

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Subhkaran Surana (343 Points)
Replied 30 May 2018

As per S.NO 2 of N.NO 12/2017 of Central Tax ( Rate)

Transfer of Going Concern as a whole or in part is exempt from GST by virtue of section 11 of CGST Act , 2017.

Thus, on GST is applicable

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 30 May 2018

There will be no GST applicable as sale ,purchase of Immovable property is not in purview of GST

And , Notification 12/2017 CT(r)S.no.2 read out TRANSFER of Concern not a sale