Dear Sir, One of my client is undergoing business rearrangement. In this process, he is transferring his entire unit to his brother, along with all the assets and liabilities. Both my client and his brother are registered under GST. The assets include Plant and Machinery, Electrical fittings, Computers etc. My questions are 1) whether my client is liable to pay GST on this transfer or the supply is exempt as the business is transferred on going concern basis. 2) Both my client and his brother want to continue their GST registration post this rearrangement and willing to start a new business with the same GST number and Same business name. Is it possible?

Reply—1) Services by way of transfer of a going concern as a whole or an independent part of it will not be liable to be taxed in view of the exemption notification issued in this regard. (Entry No. 2 of Notification no. 12/2017 (central tax rate) dated 28.06.2017)

2) New business can be start with existing registration of your client.