Regarding Rate of GST applicability on resale of machinary

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This query is : Resolved

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) rate applicable when reselling machinery originally purchased under the VAT regime. The consensus is that GST should be charged at the current applicable rate for the sale of old machinery, even if it was purchased years ago. Importantly, if no Input Tax Credit (ITC) was claimed on the original purchase, there is no need for ITC reversal upon resale.

DeepShah

DeepShah (Querist)
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06 January 2020 Hey there,

One of our client is in manufacturing of packaging boxes and card board cut outs , they have purchased one such machine before 5 years means at the time of VAT and now they want to resale such machine .

Further They bill their invoice as per 12% rate and newly machine from manufacturer of such is 18% then what should be the rate at which invoicing must be done....??

Also as there is more than 5 years of purchase of machine so there is no such case of reversal.....

Hoping that answer with reasoning will be learn by me...

CA Anita Bhadra

CA Anita Bhadra (Expert)
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06 January 2020 GST is payable as per applicable rate on sale of old machinery and Tax invoicing must be done @ 18% .

Reversal anyway will not be there as no ITC has been availed on the machinery subject to sale

DeepShah

DeepShah (Querist)
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22 February 2020 Thank you so much for reply.

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