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TMI BlogGST on Sales of Fixed Assets As ScrapX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, Hi, We purchased plant machinery from company during May-2022 and availed ITC on same. We are planning to sale that P M as scrap after decontamination. Our customer and vendor are same for purchase of P M and for decontamination services. We have all the agreement for above transactions. Detailed example for calculation is attached for your reference. Following are my observation related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this transaction. GST is payable on Sales value (refer calculation G) more than GST needs to be reversed (refer calculation N) I need to pay GST as per sales invoice. If I calculate GST on Sales realisation refer 6- GST Payable on Net Realisation value my liability increases by Rs. 54.00 ** Here is my question whether GST department ask for payment of additional GST liability on sales realisat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. (please refer to 6) 1) Purchase of Fixed Assets Particulars Sr No. Amount Taxable Value-Assets Purchased in May-2022 A 1,000.00 ITC Availed on Assets Purchased B 180.00 Total Invoice Value C=A+B 1,180.00 Less:- Commercial Credit Note Issued D 40.00 Addition to Fixed Assets E 1,040.00 2) Sale of Fixed Assets-Scrap Particulars Sr No. Amount Taxable Value-Sale of Fixed Assets in July-2024 F 700. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 GST Payable on Sales of Fixed Assets G 126.00 Total Invoice Value H=F+G 826.00 3) Decontamination Charges Particulars Sr No. Amount Decontamination Charges I 400.00 GST @ 18% J 72.00 Total Invoice Value K=I-J 472.00 4) Reversal of ITC on purchase of Fixed Assets Particulars Sr No. Amount ITC Availed at time of Fixed Assets Purchase in the month of May-2022 B 180.00 ITC Available on sale of Fixe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Assets Sale of Capital Goods (5% Per Quarter) J 72.00 GST Needs to be reversed L=B-J 108.00 5) Comparation of GST payable Particulars Sr No. Amount GST Payable as per Sales Invoice Issued G 126.00 ITC Reversable as per point 4 L -108.00 Since GST paid on Sales invoice which is higher no need to pay Additional Amount M=G+L 18.00 6) GST Payable on Net Realisation Value Particulars Sr No. Amount Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable Sales Value F 700.00 Decontamination Charges paid I 400.00 Net Sales Realisation N=F-I 300.00 GST on Net Realisation Value O 54.00 7) Comparation of GST payable Particulars Sr No. Amount GST Payable on reversal of ITC availe at time Addition to Fixed Assets L 108.00 GST on Net Realisation Value O 54.00 Since GST paid on Sales invoice which is higher no need to pay Additional Amount P=L-O 54. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 - Reply By KASTURI SETHI - The Reply = Go through para no. 13 (serial no. 7) of the decision of AAR Karnataka reported IN RE : DEPARTMENT OF PRINTING, STATIONERY AND PUBLICATIONS - 2020 (3) TMI 1088 - AUTHORITY FOR ADVANCE RULING, KARNATAKA - Reply By Shilpi Jain - The Reply = Putting in such detailed query and expecting an answer is not reasonable. Pls understand that the experts also have a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estriction of time that they can give here. You should put your query and principally get a view rather than putting such elaborate examples. THis will also ensure that there is no inappropriate advice considering the overwhelming amount of information which may not be read / understood completely. Suggest you approach a professional in this regard who can spend time and provide appropriate advice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Reply By KASTURI SETHI - The Reply = I agree with Madam Shilpi Jain in toto. A query must be specific and to the point. Brevity is beauty. - GST on Sales of Fixed Assets As Scrap - Query Started By: - Pravin Talegaonkar Dated:- 16-7-2024 Last Replied Date:- 18-7-2024 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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