I am trader, purchase machinery of Rs 15 lac inclusive gst on 2020 . Now i want to sell the machinery at same price , whether i have to pay gst. As machinery already got depreciated. Please advice
18 November 2022
No GST applicable in such a case under margin scheme. Under the Margin Scheme (in GST), a taxpayer, who opts for this scheme, is allowed to pay GST check on the margin amount on GST on sale of second hand machinery goods, i.e. the difference between the value at which the goods are supplied and the price at which the goods are purchased.
18 November 2022
Sir But now the price of machinery is Rs 10lac after depreciation whereas i am now selling it for Rs 15laks now. so here the selling price is more .so whether gst need to be paid.
18 November 2022
1 of Schedule I of the GST law (the CGST Act) treats a permanent transfer or disposal of business assets where ITC has been availed, as a deemed supply, even if it is without consideration. Therefore GST is required to be charged on sale of old machinery, rate of GST will be same as applicable on new machinery.
19 November 2022
thank you very much for clearing my doubts. one more thing please guide if I sell after 5year whether at that time gst need to be paid or not.
CAclubindia
