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sale of Capital goods

nikhil (dhule) (180 Points)

10 April 2019

on sale of cap goods their is liability to reverse ITC under sec 18(6) or have to charge GST on sale transactions

pls suggest proper treatment

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4 Replies

CA Shikha Sharma (Ceo) (3869 Points)
Replied 10 April 2019

can you elaborate the query

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Shivam RC (Student) (23683 Points)
Replied 10 April 2019

By virtue of Section 18(6) of the CGST Act 2017, In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the TRANSACTION VALUE of such capital goods or plant and machinery determined under SECTION 15, whichever is HIGHER.

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nikhil (dhule) (180 Points)
Replied 11 April 2019

we had sold our capital goods some @ below WDV n some above wdv and in some cases we were not availed ITC

pls suggest treatment for above 3 situation

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CA Shikha Sharma (Ceo) (3869 Points)
Replied 11 April 2019

plant and machinery reduced by such percentage points as may be prescribed or the tax on the TRANSACTION VALUE of such capital goods or plant and machinery determined under SECTION 15, whichever is HIGHER.

4 Like