Relief for M&A: Selling business, company piecemeal shouldn’t attract GST, says AAR ruling

An Authority for Advance Rulings (AAR) has held that hiving off part of a business should not attract Goods and Services Tax (GST), providing much needed clarity to several multinationals, conglomerates and private equity investors involved in M&A transactions.

The tax department has started scrutinising several M&A transactions where only part of a business is sold by a company.

Revenue officials claim that 18% GST should be levied in transactions where only a part of business is sold.

Source from: https://economictimes.indiatimes.com/industry/banking/finance/relief-for-mncs-in-ma-deals-after-tax-ruling/articleshow/86019089.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst