change in constituion of buissness from propitership to parnership,will the buissness be treated as going concern,before the buissness was carried by propitership firm,now it is carried by partnership firm,my question is whether this transfer of buisness is going concern concept,so that transfer of buisness does not come under purview of supply
The transfer of stock or other assets while converting an existing proprietorship entity into a new partnership firm is exempted under GST, because such goods/assets are transferred for the continuance of the same business. This exemption has been specified in Schedule II of the CGST Act. This benefit is available when the existing firm ceases to be a taxable person after such conversion. Further, the transfer of a going concern is exempted as per the CGST (Rate) notification 1/2017. Hence, it is clear that the transfer of a going concern shall not be taxable under GST.
disclaimer:this is in my personal opinion ,and I am not liable for any actions taken by you.
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