Business Restructuring From Goods And Services Tax (GST) Perspective

The speed of business dynamics demands business entities not only to revamp their internal business strategies but also expects the corporates to devise inorganic business strategies like mergers, acquisitions, takeovers etc., that results in faster pace of growth and effective utilization of resources. In order to ensure a smooth transition to the new business structure, analyzing the implications from a GST perspective becomes crucial for every practitioner.

Under GST an activity qualifies as supply in order to attract leviability. For this, the activity should be made for a consideration by the person in the course or furtherance of business. Transfer of business or its restructuring is a one-time activity and does not constitute an activity taking place in the course of business. However, since the word 'includes' has been used in the definition of supply, the scope thereof widens. Therefore, transfer of business as a going concern falls within the ambit of