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GST on sale of capital asset

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DHIRAJ JOHN MATTAM

NIL

57 Points Posted on 08 June 2021

What is the gst provision on sale of capital asst on which
(I) ITC is calimed
(ii) ITC not claimed
is any scheme available. if so please give me the notification number

Replies (6)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications when selling a capital asset. It differentiates between situations where Input Tax Credit (ITC) was claimed on the asset's purchase and where it was not. For assets where ITC was not claimed, the sale is generally not considered a supply for GST purposes. However, if ITC was claimed, GST is payable on the sale, calculated based on the asset's remaining life and value, with specific rules for determining the tax liability.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 08 June 2021

If itc not claimed gst to paid on sale of capital asset as normal outward supply.

where itc claimed you proportionately calculate remaining itc of remaining life take life of asset as 60 months. You also calculate output tax on capital asset through rate and value. the higher of remaining itc and the output tax has to be paid .
For further clarification you can mail me.