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Sales of used fixed assets

Rajesh Dalmiya (Proprietor) (30 Points)

31 October 2020

Hello,I have setup Polyhouse which is under agriculture in 2017-18 in the individual name.I am not registered under the GST as it is for farming.Now I want to sale my Polyhouse.The sale amount is much lower than the cost price.At the time of purchase I have not availed any credit also.Now I want to sale the assets either in the same state or to another state.Just wanted to know if I will be liable for any GST or any registration for sale.

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11 Replies

CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 31 October 2020

Originally posted by : Rajesh Dalmiya
	Hello,I have setup Polyhouse which is under agriculture in 2017-18 in the individual name.I am not registered under the GST as it is for farming.Now I want to sale my Polyhouse.The sale amount is much lower than the cost price.At the time of purchase I have not availed any credit also.Now I want to sale the assets either in the same state or to another state.Just wanted to know if I will be liable for any GST or any registration for sale.

If the value sale amount exceeds threshold then u are liable for gst regn.

CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 31 October 2020

Since it is going to be one time sale you may apply for Casual taxable person .

Rajesh Dalmiya (Proprietor) (30 Points)
Replied 31 October 2020

Didn't got you.It will be nice if you can explain it in details

CA. Heet Shah (Tax Consultant & Practitioner) (6180 Points)
Replied 01 November 2020

Just take a registration as casual taxable person to ignore other gst compliances.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 01 November 2020

As per Section 7 of CGST it's an supply as consideration is involved. means you are getting consideration for sale of Assets.
But , In term of Section 22 , the threshold limit to obtain Registration in case of supply of Goods is 40 lac . So if the transaction value for sale of asset is exceeding 40 lac you are required to obtain GST Registration & need collect & deposit GST on same.