If a person(service provider) whose Annual Turnover is less than 15 lakhs annually(hence not registered under GST), if he sells all his fixed assets amounting to Rs 30-40 lakhs, then will he be liable to take registration under GST? The assets were purchased in Pre-GST era.
6 Replies
Siva Shankar Reddy K
(Associate Chartered Accountant Indirect Taxes )
(51 Points)
Replied 05 March 2020
Schedule -1 of CGST will only to the business assets on which ITC was claimed. In the given case building is selling in an individual capacity and not in the course or furtherance of business hence it is not a supply as per Section 7 of CGST act.
No need to take registration.
Yash Morakhia
(107 Points)
Replied 12 March 2020
| Originally posted by : Siva Shankar Reddy K | ||
 |
Schedule -1 of CGST will only to the business assets on which ITC was claimed. In the given case building is selling in an individual capacity and not in the course or furtherance of business hence it is not a supply as per Section 7 of CGST act. No need to take registration. |
 |
He is not selling building, but he is selling his machinery of the business. Then will he be liable to take registration under GST ? He is selling the machinery for closure of his business so that cannot be termed as in the course or furtherance of business right?
CA Akshay Hiregange
(Partner - Audit & Assistance)
(4515 Points)
Replied 12 March 2020
Dear Siva Reddy , schedule I applies only when there is no consideration. (your answer to be amended here).
And to differentiate individual capacity or business asset, to check if the assets were considered part of business (used for business) and shown in tax returns (where depreciation would be claimed).
Therefore, GST liable and registration is required.
Recent Topics
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
Related Threads
CAclubindia
