Gujarat AAR Grants GST Exemption on Slump Sale of Real Estate Project as Going Concern
The present application (no. Advance Ruling/SGST&CGST/2024/AR/36), dated December 13, 2024, has been filed by a company named M/s. RDB Realty and Infrastructure Limited (applicant) before the Gujarat Authority for Advance Ruling Goods and Services Tax D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad-380 009. Hearings on this matter took place on three dates: 19.08.2025, 29.07.2025, and 08.04.2025.
The applicant is registered under the GST Act, having GSTIN 24AADCR8845C1ZF, and is located at 1st Floor, Regent Square, Gangeshwar Mahadev Road, Near Suryodaya Tower, Surat, Gujarat-395009.
The headquarters of the applicant is located in Kolkata, with a PAN India presence and is a real estate company. As told by the applicant, the policy called “Redevelopment of Public Housing Scheme 2016” was pursued to redevelop the Public Housing Scheme of “Aanjana Tenements” located on F. P. No. 98 of T. P. Scheme No. 7 (Aanjana), Surat, consisting of 416 flats and 6 Shops. The policy was declared by the State of Gujarat, Surat Municipal Corporation (“SMC” for the sake of brevity).
SMC invited tenders from willing developers for the redevelopment of the said scheme, and the tender submitted by the applicant was accepted, being the highest. SMC had recovered the security deposit and issued a work order on August 21, 2017.
Under a contract, the applicant is required to construct 416 flats having 32.13 sq. ft. m of carpet/built-up area for original occupants of the Scheme 6 Shops for the Shop Owners in the Scheme, and an additional 486 Affordable Houses having Carpet area/built-up area of 30.00 Sq.
Question Asked by Applicant:
The applicant had some questions regarding his business and hence sought the present Gujarat Authority for Advance Ruling (No. GUJ/GAAR/R/2025/42), dated October 09, 2025, clearing the following doubts:
“Question 1: Whether the Sale of a Specific Unit of a Construction Site (All Assets & liabilities pertaining to that Project will be transferred) at Surat, as discussed in the Application, will be classified as a “Slump Sale?”
Question 2: Whether the Supply made as a “Going Concern” by way of “Slump Sale” will be classified under SAC 997119.
Question 3: If the answer to Question No. 2 mentioned above is yes, then whether the Applicant is eligible for Exemption under Notification No. 12/2017-CT (Rate) Dt. 28.06.2024 under the Entry No. (2)?”
Answer Given by Uttar Pradesh AAR:
The following answers have been given by the Gujarat Authority for Advance Ruling Goods and Services Tax (GST) to the questions asked by the applicant:
- Answer 1: The authority has not answered the first question.
- Answer 2: Yes, supply made as a “Going Concern” by way of “Slump Sale” will be classified under SAC 997119.
- Answer 3: Yes, the applicant is eligible for exemption under Notification No. 12/2017-CT (Rate) dated 28.06.2024 under the Entry No. (2).
Refer to the official advance ruling for complete information.
