Sale of Old Machinery, Goods and Services Tax - GST

[Rajendra Prasad]

Dear Sir,

I am owning a Factory. The product is exempt under VAT Act and GST Act.

I have set up this unit 10 years back. No ITC was taken either in the VAT Law / GST Law. Now also the factory is not registered under GST as sale is fully exempt.

Now I am seeling the old Plant & Machinery for ₹ 75.00 Lacs.

Is the transaction liable for GST.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

The reply to your query is 'no' since you manufacture exempt goods and you have not availed input tax credit of tax paid on capital goods.

[YAGAY andSUN]

In this connection you need to give reference of your old Invoice against which you had procured such P&M without availing the CENVAT and ITC Credit, while selling the goods by issuance of Bill of Supply. Fixed asset register and a certificate from CA will also required.

[KASTURI SETHI]

I support the views of both experts.

[SHARAD ANADA]

It is supply as per section 7 of CGST Act. The machinery itself is not exempt. Value of supply is more than 20 lakh you need GST regn. also.

In my view you have to pay GST @ rate as per HSN of machinery you are going to sale.

[Resham Sidhu]

I agree with Mr Sharda Nanda

[A SUBRAHMANYAM]

The products sold by them are exempted and not the Machinery they sell when it is valued more than 20 lakhs. The activity is liable for GST

[Guravaiah Manam]

IT IS TAXABLE

[AM Sameer]

The Transaction is taxable irrespective of INPUT TAX Credit availed or not