Going concern transfer
Going concern transfer Sale of business as a ‘going concern’ [commonly called, lock-stock-barrel basis] is not taxable as per paragraph 4(c), schedule II of the CGST Act read with entry no. 2 to exemption Notification no. 12/2017- Central Tax (Rate) dated 28th June, 2017. Schedule II of the CGST Act: It talks about activities that are treated as a supply of goods or services. Here clause 4 says that transfer of business assets is considered as supply of goods. However, as per clause 4(c) transfer of a business as a whole and as a going concern is not considered as a supply of goods. Notification No.12/2017- Central Tax (Rate): As per this notification, services by way of transfer of going concern as a whole or part thereof is exempt from GST. By way of this notification, the Revenue has clarified that transfer of a business as a going concern is exempt from GST. But the term going concern is not defined anywhere under GST. The notification says that the activity of business transfer as