Query - "A" who is into business of health care and making exempt supply.
A Co. has a machinery on which they didn't claim the ITC at the time of buying machine.
now Co. A has there branch in Bihar having the different GSTIN "B" wants to transfer the machinery to "B".
what would be the implications of gst on this transaction ?
wheater "A" has to charge the GST from "B" or not ?
Gst on sale of used capital goods
Replies (8)
Quick Summary
Kindly clarify following:
Whether A is registered in GST ????
What is the approximate cost (in books) of Machine being delivered
Whether A is registered in GST ????
What is the approximate cost (in books) of Machine being delivered
Both A & B are registered in GST.
WDV of Machinery - 1020000/-
As per Schedule I , Permanent transfer or disposal of business asset where ITC has been availed on such asset .
As transfer is between distinct person but the ITC is not availed , hence shall not be consider as Supply. Can be transferred under DC as prescribed in Rule 55.
Note : If above transaction was not occur between related or distinct person & consideration is involved then even if the ITC has been not availed it shall be considered as Supply .
As transfer is between distinct person but the ITC is not availed , hence shall not be consider as Supply. Can be transferred under DC as prescribed in Rule 55.
Note : If above transaction was not occur between related or distinct person & consideration is involved then even if the ITC has been not availed it shall be considered as Supply .
Sorry for Above 'Note" kindly read it as below:
Note : wherever there is consideration is involved for transfer/disposal of asset the same shall be treated as supply for attracting GST irrespective of the fact whether ITC has been availed.
So if 'A' is taking in any consideration from "B" then it is a supply & taxable in GST.
It is a supply and taxable in GST
no....if there is no consideration is involve it cannot be supply, because itc has not been availed on same. kindly refer section 7 cgst r/w schedule I.
(its being between distinct peron)
Then Which document is needs to be issued in this case !!
Consideration is not involved : Issue Delivery Challan else Tax Invoice.
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