1. GST Applicability -
a) If the machinery is purchased in the VAT regime and sold in the GST regime.
b) If the machinery is purchased in the GST regime and sold in the GST regime.
Please advise us on both cases, whether GST credit is availed or not.
From India, Gurgaon
a) If the machinery is purchased in the VAT regime and sold in the GST regime.
b) If the machinery is purchased in the GST regime and sold in the GST regime.
Please advise us on both cases, whether GST credit is availed or not.
From India, Gurgaon
Dear friend,
This is a forum mainly focusing on HR-related issues. Sales tax matters should be raised in a different forum. However, here are some views on your queries. You haven't mentioned whether the machinery purchased is for trading (buying and selling) or if your capital goods are considered for disposal as scrap. Therefore, there are different views based on the nature of the transactions.
For your information, the different situations are as follows:
1. If the machinery was purchased in the VAT regime and sold in the GST regime, and the input VAT was claimed, then what will be the taxable value?
2. If the machinery was purchased in the GST regime and sold in the GST regime, and the GST input is taken, then what will be the taxable value?
3. If the machinery was purchased in the GST regime and sold in the GST regime, and the GST input is not taken, then what will be the taxable value?
1. GST on the transaction value
2. GST applicable as per rule 44
3. GST on the taxable value, i.e., the consideration invoiced or to be received.
If the machinery is purchased in the VAT regime and sold in the GST regime, then the GST will be charged on the sale/transaction value. If it is purchased in the GST regime and no Input Tax Credit (ITC) was claimed, then as per Schedule I, it will not be considered as a supply; hence, no GST will be applicable.
Disclaimer: The rules mentioned above will apply.
Read more at: https://www.caclubindia.com/forum/gs...ery-472557.asp
Regarding a business dealing in second-hand machinery, the opinion is attached, and other relevant issues are discussed therein. This information will help you assess the position.
From India, Bangalore
1274This is a forum mainly focusing on HR-related issues. Sales tax matters should be raised in a different forum. However, here are some views on your queries. You haven't mentioned whether the machinery purchased is for trading (buying and selling) or if your capital goods are considered for disposal as scrap. Therefore, there are different views based on the nature of the transactions.
For your information, the different situations are as follows:
1. If the machinery was purchased in the VAT regime and sold in the GST regime, and the input VAT was claimed, then what will be the taxable value?
2. If the machinery was purchased in the GST regime and sold in the GST regime, and the GST input is taken, then what will be the taxable value?
3. If the machinery was purchased in the GST regime and sold in the GST regime, and the GST input is not taken, then what will be the taxable value?
1. GST on the transaction value
2. GST applicable as per rule 44
3. GST on the taxable value, i.e., the consideration invoiced or to be received.
If the machinery is purchased in the VAT regime and sold in the GST regime, then the GST will be charged on the sale/transaction value. If it is purchased in the GST regime and no Input Tax Credit (ITC) was claimed, then as per Schedule I, it will not be considered as a supply; hence, no GST will be applicable.
Disclaimer: The rules mentioned above will apply.
Read more at: https://www.caclubindia.com/forum/gs...ery-472557.asp
Regarding a business dealing in second-hand machinery, the opinion is attached, and other relevant issues are discussed therein. This information will help you assess the position.
From India, Bangalore
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