If a partnership firm wants to transfer the software (i.e Intangible Assets) to its partners at Nil consideration, whether we have to do GST reversal?
6 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 24 March 2021
18% GST will come for transfer of software
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 24 March 2021
Yes, GST reversal have to be made.
Dinesh Prajapati
(CA in Practice)
(35 Points)
Replied 24 March 2021
Can you please let me know under which section or Rule this reversal will be done?
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 24 March 2021
Reversal have to be made under section 18(6) of the CGST Act, 2017
Dinesh Prajapati
(CA in Practice)
(35 Points)
Replied 24 March 2021
Section 18(6) "In case of supply of capital goods or plant and machinery,........."
Sec 2(19) "Capital goods means goods,......"
Sec 2(52) "goods means every kind of movable property......."
As per my understanding, software is not a capital goods, so section 18(6) will not be applicable.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 24 March 2021
Yes it an supply under Schedule 1 , need to compute the transaction value as per Section 15 of CGST Act & charge GST & collect GST.
Then No need to reverse GST.
Then No need to reverse GST.
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