Gujarat AAR Rules GST Exemption on Slump Sale of Real Estate Project as Going Concern
Gujarat AAR has ruled that the transfer of a real estate project as a going concern qualifies as a slump sale and is exempt from GST under specific conditions.
GstReal EstateSlump SaleGoing ConcernAarReal EstateOct 31, 2025
The applicant is registered under the GST Act, with GSTIN 24AADCR8845C1ZF, and is located at 1st Floor, Regent Square, Gangeshwar Mahadev Road, Near Suryodaya Tower, Surat, Gujarat-395009. The company's headquarters are in Kolkata, and it has a PAN India presence. RDB Realty and Infrastructure Limited is a real estate company that has been involved in the redevelopment of public housing schemes.
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). 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 the contract, the applicant is required to construct 416 flats with a 32.13 sq. ft. m of carpet/built-up area for the original occupants of the scheme, 6 shops for the shop owners in the scheme, and an additional 486 affordable houses with a carpet area/built-up area of 30.00 sq. m.
The applicant had some questions regarding their business and sought the present Gujarat Authority for Advance Ruling (No. GUJ/GAAR/R/2025/42), dated October 09, 2025, to clarify the following doubts:
1. Whether the sale of a specific unit of a construction site (all assets and liabilities pertaining to that project will be transferred) at Surat, as discussed in the application, will be classified as a “Slump Sale”?
2. Whether the supply made as a “Going Concern” by way of “Slump Sale” will be classified under SAC 997119.
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) dated 28.06.2024 under Entry No. (2).
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:
1. The authority has not answered the first question.
2. Yes, the supply made as a “Going Concern” by way of “Slump Sale” will be classified under SAC 997119.
3. Yes, the applicant is eligible for exemption under Notification No. 12/2017-CT (Rate) dated 28.06.2024 under Entry No. (2).
For complete information, refer to the official advance ruling.
Frequently Asked Questions
What is a slump sale in the context of real estate?
A slump sale in real estate refers to the transfer of a business or project as a going concern, where all assets and liabilities are transferred together, without a specific price for each asset.
What is the role of the Gujarat Authority for Advance Ruling (AAR)?
The Gujarat AAR provides advance rulings on tax-related matters to help businesses understand their tax obligations and avoid disputes.
Is a slump sale of a real estate project exempt from GST?
Yes, a slump sale of a real estate project as a going concern is exempt from GST under Notification No. 12/2017-CT (Rate) dated 28.06.2024, as classified under SAC 997119.
What is the significance of the 'Redevelopment of Public Housing Scheme 2016'?
The 'Redevelopment of Public Housing Scheme 2016' is a policy by the State of Gujarat to redevelop public housing projects, which involves the construction of new flats and shops for original occupants and shop owners.
How does the classification under SAC 997119 affect the GST exemption?
Classification under SAC 997119, which pertains to the transfer of a business or project as a going concern, qualifies for GST exemption under the specified notification.
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