If a partnership firm wants to transfer the software (i.e Intangible Assets) to its partners at Nil consideration, whether we have to do GST reversal?
Transfer of Software to Partners
Replies (6)
Quick Summary
18% GST will come for transfer of software
Yes, GST reversal have to be made.
Can you please let me know under which section or Rule this reversal will be done?
Reversal have to be made under section 18(6) of the CGST Act, 2017
Section 18(6) "In case of supply of capital goods or plant and machinery,........."
Sec 2(19) "Capital goods means goods,......"
Sec 2(52) "goods means every kind of movable property......."
As per my understanding, software is not a capital goods, so section 18(6) will not be applicable.
Yes it an supply under Schedule 1 , need to compute the transaction value as per Section 15 of CGST Act & charge GST & collect GST.
Then No need to reverse GST.
Then No need to reverse GST.
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