Page 186 - GSTL_23rd April 2020_Vol 35_Part 4

512 GST LAW TIMES [ Vol. 35
(iv) That the covered area was around 1.25 lakhs sq feet. A total carpet
area of 85 thousand sq feet was constructed up to the date of trans-
fer.
(v) That M/s. Ronav Infrastructure (buyer) engaged in the same busi-
ness, approached the applicant to take over this incomplete project
to further carry out the business of constructing and selling the said
building.
(vi) That the applicant entered into an agreement with M/s. Ronav In-
frastructure for transfer of the business as a “going concern”. The
main asset of the business being the land, the incomplete flats con-
structed on the land and the approved map. A separate sale deed
was executed for transfer off flats as required under the state law for
Rs. 21.80 crores on 24-10-2019.
7. In the present case we are not deciding any wider question but re-
stricting our conclusion to the facts and circumstances which was filed for our
consideration in the application. Now we proceed as under :
7.1 Whether “Business Transfer Agreement” as a going concern which
consists of transferring under-construction project, is exempted from the levy of
GST in terms of Serial No. 12 of the Notification No. 12/2017-Central Tax (Rate),
dated 28-6-2017. We have gone through the said notification and we find that the
issue in hand pertains to Serial No. 2 of the notification and not to Serial No. 12
of the said notification as mentioned by the applicant in their application and
accordingly we reproduce the relevant portion of the said Notification as under :
Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017
G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section
11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central
Government, on being satisfied that it is necessary in the public interest so
to do, on the recommendations of the Council, hereby exempts the intra-
State supply of services of description as specified in column (3) of the Ta-
ble below from so much of the central tax leviable thereon under sub-
section (1) of section 9 of the said Act, as is in excess of the said tax calculat-
ed at the rate as specified in the corresponding entry in column (4) of the
said Table, unless specified otherwise, subject to the relevant conditions as
specified in the corresponding entry in column (5) of the said Table,
namely :-

Sl. Chapter, Section, Description of Services Rate Condition
No. Heading, Group (per
or Service Code cent.)
(Tariff)
(1) (2) (3) (4) (5)
2 Chapter 99 Services by way of transfer of a Nil Nil
going concern, as a whole or an
independent part thereof

7.2 On perusal of Serial No. 2 of the said notification we find that the
services by way of transfer of a going concern, as a whole or an independent part
thereof is to be treated as supply of service and covered under Chapter 99 of the
Service Code (Tariff) and is exempted from GST.

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