My father in the business of Dairy products now they are wishing to transfer their business to me with asset.
Now my question is whether GST will be also be levied on transfer of asset to me?
As their have majority goods which is exempt from GST, my concern is only for asset whether i have to pay tax on them.
Sale of a going concern by a business house will not attract Goods and Services Tax (GST), as per an order by the Authority for Advance Ruling(AAR).
The Karnataka bench of the AAR gave its ruling based on an application filed by Rajashri Foods Pvt Ltd which wanted to sell one of its units along with fixed and current assets as well as liabilities, including bank loans, for a lump sum consideration.
The AAR said that as per a government notification, any transfer of a going concern constitutes a 'supply of service' and 'nil' tax rate will apply on it.
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