I have kept some business assets ( Furniture, Electrical installation, Tools & equipment and cars) in my books of account, now i want to closed my business and sold above assets, Above assets purchase before GST regime and claimed MVat & central excise and as per tax audit block of above assets is nill. I have purchase furniture in FY-10-11 and till date wdv is-1.36 lakh as per books & as per income tax, and electrical installation & car purchase in FY 10-11 and wdv as per books is 5.55 lakh but as per Income tax wdv is nill, Tools & Equipment purhcase in FY-12-13 and wdv is-1.95 lakh as per books and as per it wdv is nill. I want to sale above assets, so how i can calculate GST payable on above assets, In case of Car I have not taken Central excise & M Vat credit.
17 November 2019
GST is payable on sale of capital goods .
As per schedule II of CGST Act 2017 -goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person; It does not matter whether: Goods belong to Pre GST era or Post GST era
Now , the value on which GST is to be calculated is to be ascertained . ITC on Unutilised portion of capital Asset need to be considered for calculation . For the purpose , life of capital Asset is assumed to be 5 years ( In your case , 5 year is already over , so in my view ITC availed will not have any effect on your GST calculation liability )
In all you other Asset GST will be simply applicable % ( 18%) on sales consideration .
For Car - Vide Notification 8/2018- Central Tax (Rate) dated 25 January 2018, the margin scheme was made applicable to all taxpayers on the sale of motor vehicle held as capital asset. In this regard, GST has to be paid on the excess of selling price over the written down value as per the Income Tax Act, 1961, where depreciation has been claimed by the taxpayer. Where no depreciation has been claimed, GST shall be paid on the difference in the selling price and the purchase price.
For more details , refer :- https://taxguru.in/goods-and-service-tax/sale-capital-goods-gst-regime.html
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