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It has been claimed that the sale of a going concern business is always a zero-rated supply for tax purposes in terms of the goods and services tax (GST).
Required: Evaluate the accuracy of the above statement using the GSTA 1985 and any relevant court law decisions to support your argument.
Expert Answer
Answer :- The statement given in the question is very accurate i.e., correct one.
Explanation :- Under Goods & Service Tax Act (GSTA) 1985, Sale of a business on the going concern basis is not treated as supply in the ordinary course of business, accordingly, it is treated differently as the zero-rated supply for the purpose of tax i.e., taxable in GSTA 1985 at the NIL tax rate.
