Q.28 2 partners in a Firm….only one capital asset ….value -1.10 CR; partner A decides to leave- as mutually decided upon the dissolution the capital asset will be tfd to Partner B …..whether the firm will charge GST on this transfer value…pls guide 

Ans. GST shall be levied on the transaction which falls under the scope of Section 7 of the CGST Act, 2017 (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

Further, the activity will be considered as supply of goods by virtue of schedule II of the CGST Act, 2017 which says that “Where goods forming part of the assets of the business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, such transfer or disposal is a supply of goods by the person”

Therefore, GST shall be applicable on the transfer or disposal of assets of the firm as the same is apparently covered under the scope of supply. Contrary, there are judgments which have contrary views.

Q.27 What is latest turnover limit for GST registration ? 

Ans. For Supplier Exclusively engaged in Supply of Goods: 40 lakhs

For Supplier other than above: 20 Lakhs

Q.26 Is RCM receipt is to be considered for above limit ? 

Ans. It should be included, yes in case a person having receipts exclusively related to RCM supplies are exempt from the registration.