Indirect Tax Updates: Clarification On Refund Related Issues, New Functionalities On GSTN Portal, New MVAT Audit Report

Important rulings by the Authority for Advance Ruling (AAR)

• Whether the sale of an independent unit of an entity along with its assets and liabilities would amount to supply of goods or supply of services or both? Furthermore, whether such transaction would be exempt in accordance with entry at Sr. No. 2 of Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017?
  
  AAR, Karnataka has held that since the unit being sold is functional and is desired to be transferred as a whole, it amounts to a transfer of a going concern. The transfer of a going concern, either as a whole or an independent part thereof, for a lump sum consideration, does not constitute an activity taking place in the course of business or for furtherance of business. However, since the definition of 'supply' under Section 7(1) of the CGST Act, 2017 used the word 'includes' the scope of 'supply' goes beyond the meaning of the expression 'in the course or furtherance of business.' Therefore,