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GST on sale of Depreciable Asset

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md.sarfaraz alam

31 Points Posted on 18 March 2022

Fixed Asset Purchase for Business Purpose but not Claimed Input Tax Credit as we are in Hotel Industry with '5% GST on Sale with No ITC'. Now are selling the Fixed Asset because of Closure of Business. Can we Charge GST On the Sale of Used Fixed Asset?
Fixed Asset Include: Computer, Machinery, Furniture & Motor Car

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Replies (4)

Quick Summary

This discussion addresses whether GST is applicable when selling used fixed assets, such as computers, machinery, furniture, and motor cars, following a business closure. While GST generally applies at current rates, specific rules exist for motor cars under Notification 8/2018 CT (Rate), which restricts this rate if input tax credit was previously claimed. For other assets, standard GST rates apply.

prasad Nilugal

GST Practitioner & Accounts

8996 Points Posted on 18 March 2022

GST applicable on sale of old fixed assets as per the prescribed rate at present . only in case of Motor car you have to apply notification 8/2018 CT ( rate) date 25/1/2018 for calculation of GST .

sabyasachi mukherjee

Profession

19978 Points Posted on 19 March 2022

This notification clearly says that a taxable person (dealer)cannot avail such rate if there is any input tax credit availed earlier.

prasad Nilugal

GST Practitioner & Accounts

8996 Points Posted on 19 March 2022

@ Sabyasachi Mukherjee

Above mentioned notification 8/2018 CT is applicable only in case of sale of Motar Car .
On other assets GST will be applicable as per prescribed rate