Restaurant business transfers qualify for GST exemption as going concerns when operations can continue independently despite retained past liabilities.
Case-Laws
GST
Transfers of restaurant businesses for consideration in the course or furtherance of business constitute supplies under section 7(1)(a) of the CGST Act, 2017. Transfer of a going concern, as a whole or an independent part, is an exempt supply of services where a functioning economic activity can continue independently under the transferee. Continuity may be established through the transfer of operations, staff, working assets and recurring operational responsibilities. Retention of past liabilities by the transferor does not by itself disqualify the exemption. Lump-sum consideration without item-wise allocation may support, but does not independently establish, the transfer of an operational undertaking.
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