GST on sale of capital asset

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.