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TMI BlogSecond hand good purchased from ex employer (Bank)X X X X Extracts X X X X X X X X Extracts X X X X ..... Second hand good purchased from ex employer (Bank) X X X X Extracts X X X X X X X X Extracts X X X X ..... implemented at that time), these furnitures were purchased in the name of bank, now since I am leaving the organization , I have to purchase it back from the bank at depreciated cost, my bank while has depreciated the value, but has charged me GST on the depreciated value , my question is is GST applicable? Does it not come under the section 32(5) , where in a second hand good will not come under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST as the selling price is Lower than purchase price ,and no input credit was obtained at the time of purchase ( please note the purchaser is a bank) , my last question if it's applicable , on what value is it applicable , on the difference between purchase and sale or the sale price ? Reply By Alkesh Jani: The Reply: Sir, my view is that Rule 32(5) of CGST, Rules, 2017, is not applicable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n your case, as the Bank is not engaged in dealing i.e. sale and purchase of second hand goods. The Section 15(1) of the CGST, Act, 2017, is applicable in your case and Bank has rightly charged GST on the depreciated value. Our expert may correct me if mistaken. Reply By vivin vijay: The Reply: Dear expert, on what will you consider GST if applicable, on the depreciated value which includes VAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well ? Currently, the value including GST , makes the price of the second hand good which was purchased two years become more expensive then it's purchase price , as the the GST ranges between as high as 28 percent on the LCD and 18 percent on the furniture. Also one more question since in this transaction the bank is a seller of furniture hence by the nature it becomes a dealer even though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the principal activity is not to sell furniture. Reply By KASTURI SETHI: The Reply: Bank cannot be termed as a dealer by any stretch of imagination. By selling second hand goods Bank does not become a dealer at all. Reply By KASTURI SETHI: The Reply: Dear Querist, Peruse replies of Sh.Sanjay Malhotra, C.S. in respect of Issue ID no.113103 dated 24.11.2017. All doubts will be cleared. Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Ganeshan Kalyani: The Reply: for car there is different tax rate based on notifications released. however, on furniture i m doubtful that cbec has given any clarification on this Reply By Ganeshan Kalyani: The Reply: tax is payable on sale value @ 18%. Reply By KASTURI SETHI: The Reply: Dear Querist, The following extract is relevant for you though it pertains to pre-GST era. It is an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtract from the judgement:- [5(A) (a) If the capital goods, on which Cenvat credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the Cenvat Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter or a year or part thereof from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of taking the Cenvat Credit, namely. (i) for computers and computer peripherals : For each quarter in the first year @ 10% For each quarter in the second year @ 8% For each quarter in the third year @ 5% For each quarter in the fourth and fifth year @ 1% (ii) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter : Provided that if the amount so calculated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value. (b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.] [(5B) If the value of any, (i) input, or (ii) capital goods before being put to use, [on which Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat credit has been taken is written off fully or partially or where any provision to write off fully or partially has been made in the books of account then] the manufacturer or service provider, as the case may be, shall pay an amount equivalent to the Cenvat credit paid earlier subject to the other provisions of these rules.] Reply By MUKUND THAKKAR: The Reply: please refer your branch balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce sheet if all said furniture covered under assets, Than GST is applicable. X X X X Extracts X X X X X X X X Extracts X X X X
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