gst on selling of old machinary

manish gupta (assistant manager ) (44 Points)

29 January 2018

respected sir ,
please mention gst calculation for selling of old machinery inter state. ??

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5 Replies

M Sekhsaria (2 Points)
Replied 29 January 2018

On the basic value of machine add cess and then on the total value (taxable value) calculate IGST.

Vamshi Krishna Javvaji (CA) (410 Points)
Replied 29 January 2018

Dear Manish,

For Interstate sale IGST shall be applicable. The tax should be calculated on the transaction value. Cess should not be included for the same.

If the machinery was purchased under GST and credit was availed, Sec 18(6) shall be applicable and the GST payable shall be highest of the below:

a. Taxable value * GST %

b. Total credit availed - Credit availed*5%*No.of quarters or part there of.

Note: For this purpose, quarters should be considered as Apr-Jun, Jul-Sep, Oct-Dec, Jan-Mar.

Regards,

CA Vamshi Krishna

manish gupta (assistant manager ) (44 Points)
Replied 30 January 2018

thanks sir , but here machine is very old..

Vamshi Krishna Javvaji (CA) (410 Points)
Replied 30 January 2018

In that case, The tax should be calculated on the transaction value.

manish gupta (assistant manager ) (44 Points)
Replied 30 January 2018

ok sir thanku

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