Corporate restructuring — mergers, demergers, slump sales, business transfers — triggers complex GST implications. The GST treatment depends on whether the transaction qualifies for exemption under Schedule II, the nature of the supply, and the valuation. A professional advisor ensures that the restructuring is tax-efficient and compliant.
This article explains the GST advisory services for corporate restructuring.
Types of Restructuring
- Merger: Amalgamation of two entities.
- Demerger: Transfer of an undertaking.
- Slump Sale: Sale of an undertaking as a going concern.
- Business Transfer: Transfer of business assets and liabilities.
GST Implications
- Exemption: Transfer as a going concern is exempt under Schedule II.
- Valuation: Rule 28 applies to related-party transactions.
- Place of Supply: Determined by the location of the recipient.
- ITC: Transfer of ITC on merger/demerger.
Services Provided
- GST impact analysis of the proposed restructuring.
- Exemption eligibility assessment.
- Valuation and documentation.
- ITC transfer planning.
- Post-restructuring compliance.
Conclusion
GST transaction advisory ensures that restructuring transactions are structured tax-efficiently and compliantly. A professional advisor identifies risks and opportunities before the transaction is finalised.
At Anuj Desai & Associates, we provide expert GST transaction advisory and restructuring services for corporate groups. Our team advises on mergers, demergers, and business transfers.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.