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gst on closing stock at the time of business transfer
Father transfer his proprietary business in favour of his son with assets and liabilities without any consideration . GST liable on closing stock on date of transfer by father . please clarify the position .
Replies (2)
As it is transaction between related party, though it is without consideration, such transaction has to be valued at market value. The closing stock shall be valued at current market value and tax shall be calculated on such amount. However the son can take itc on the tax paid
There will be supply but nil Rated
as per schedule II , exception to 4(c) when business is transferred as a going concern from one person to another person , its a supply But .....
As per Sl.no.2 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, Transfer of business as an on going concern is a Supply of Service and is NIL rated.
hence No GST attracts
as per schedule II , exception to 4(c) when business is transferred as a going concern from one person to another person , its a supply But .....
As per Sl.no.2 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, Transfer of business as an on going concern is a Supply of Service and is NIL rated.
hence No GST attracts
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