Karnataka AAR Says Past Liabilities Won’t Block GST Exemption

The Karnataka Authority for Advance Ruling ruled that Swingbuy Hospitality LLP’s transfer of a going‑concern business remains eligible for GST exemption despite the presence of retained past liabilities. The decision clarifies that historic debts do not automatically disqualify a business from the exemption, provided the enterprise continues its operations and meets other statutory criteria. This precedent offers guidance for similar cases across the state.