Transfer of Specific Unit as a Going Concern via Slump Sale is Exempt Under GST

Last updated: 13 November 2025

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The Gujarat Authority for Advance Ruling (AAR) has ruled that the transfer of a business as a going concern, even if structured as a slump sale, is exempt from GST. The ruling classifies such a transfer under Service Accounting Code (SAC) 997119 and confirms its exemption under Notification No. 12/2017-CT (Rate). While the AAR did not definitively rule on the 'slump sale' classification itself, it recognised the transaction as a business transfer with GST implications, confirming the exemption.

Court :
Gujarat AAR

Brief :
The Gujarat AAR in the matter of RDB Realty & Infrastructure Limited [Advance Ruling No. GUJ/GAAR/R/2025/42order dated October 09, 2025] held that the supply made as a going concern by way of slump sale is classified under SAC 997119 and is exempt under Notification No. 12/2017-CT (Rate). The Authority refrained from answering whether the sale is classified as "Slump Sale" as the term is not defined under GST but recognized the transaction as a transfer of business with GST implications.

Citation :
Advance Ruling No. GUJ/GAAR/R/2025/42order dated October 09, 2025

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