Slump sale of proprietorship

A slump sale is a transfer of one or more undertakings for a lump sum consideration, without assigning values to individual assets and liabilities.

Here are the consequences and implications in GST and Income Tax: GST Implications:

1. _Tax Liability_: The transfer of business as a going concern is exempt from GST, provided the transferee is registered under GST.

2. _ITC Reversal_: The proprietorship may need to reverse the input tax credit (ITC) claimed on inputs and input services used for the transferred business.

 3. _GST Registration_: The private limited company must obtain a new GST registration or transfer the existing registration in its name.

Income Tax Implications:

1. _Capital Gains Tax_: The proprietorship may be liable to pay capital gains tax on the transfer of business, as it is considered a transfer of

Thank you sirfor your advise on this.

Any form or declaration to be made for GST department