Classification of Supply — In the instant case, we find that the business of the applicant i.e., Shilpa medicare limited of Andhra Pradesh unit, as a whole along with the capital assets is being transferred as going concern to Shilpa medicare limited of Karnataka Unit for a monetary consideration.
Questions raised before the authority:

1. Whether the transaction would amount to supply of goods or supply of services or supply of Goods & Services?”

2. Whether the transaction would cover SI.No.2 of the Notification No.12/2017-CT (Rate) dated 28.06.2017?

3. Can we file GST ITC-02 return and transfer unutilised ITC from Vizianagaram, Andhra Pradesh unit to Bengaluru, Karnataka Unit?

Held that—
it is obvious that the ‘going concern’, which was excluded form list of ‘supply of goods’, would automatically fall under ‘supply of services’.

Further, the description of services under SI.No.2 of Chapter 99 of Notification No.12/2017-CT (Rate) dated 28.06.2017 provides for “Services by way of transfer of a going concern, as a whole or an independent part thereof’ as nil rated. Hence, the transaction is not liable to tax.

In case of sale or transfer, the transferor can transfer unutilised input tax credit to the transferee, which is lying in his electronic credit ledger, by filing Form GST ITC-02.—Shilpa Medicare Limited, In Re… [2020] 21 TAXLOK.COM 134 (AAR-AP)