Sale of Property by a Partner

Key Requirements

A partner should assess the agreement among partners, funding source, balance-sheet treatment, business use, distribution of rent and whether all owners are partners. Title in personal names alone does not prove personal investment. A registered partnership’s non-residential property sale or lease requires GST, while the source distinguishes a partner’s genuinely personal property from partnership property. Its one-off personal-investment sale example requires no business use and no trading intention; it is not a general exemption for every personally titled commercial property. An owner carrying on business separately assesses registration liability, with capital-asset disposal excluded from the relevant turnover calculation. Input tax on partnership acquisitions still requires the normal claim conditions. Keep the partnership agreement and financial evidence supporting the classification.