An application was filed in Rajashri Foods (P.) Ltd regarding the sale of one of its manufacturing units for a lump sum consideration. The firm wanted to know how the transaction would be treated. The Authority for Advance Ruling (AAR) held that the business will continue in new hands, hence such transaction would be in the nature of a going concern.
As per the Central GST Act, this does not amount to supply of goods. It would be treated as ‘supply of service’ and, hence, exempt from GST.