Transfer of partnership interest in LLP

This query is : Resolved

Quick Summary

Transferring a partnership interest in an LLP is generally considered a supply for GST purposes, not a transaction in securities. However, it may be exempt if it qualifies as a transfer of a going concern or if structured as a capital contribution or share in net assets without direct consideration.

KHUSHI SINGH

KHUSHI SINGH (Querist)
Follow

20 August 2025 Can we say that transfer of partnership interest in LLP is transaction in securities and thus, not amounting to ‘supply’ and subject to GST?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

21 August 2025 Yes, GST not applicable, it's ownership transfer not a supply of goods or services.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

21 August 2025 No, transfer of partnership interest in an LLP cannot generally be treated as a "transaction in securities" under the current legal framework.

🧾 Therefore, it may be treated as a supply under GST, unless:

It qualifies as a transfer of a going concern (exempt under GST), or

Structured in a way that no supply of goods/services occurs (e.g. capital contribution/share in net assets without consideration).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now