TaxTMI 
TaxTMI 
i want to purchase machinery from other state, should i buy the machinery before gst is implement or after gst is implement.
should i buy machinery after gst or before gst which will be benefit for me
29 Aug 2016 
11 Replies 
7961 Views Asked by
Guest 
Inter-state tax treatment: IGST applies to machinery purchases, with input tax credit available against GST liabilities.
Implementation timing of GST is uncertain; for inter state machinery purchases IGST will apply and input tax paid is expected to be creditable and set off against GST liabilities where the final product is taxable. Pre GST purchases attract Central sales tax and other duties with limited credit. Full input tax credit on capital goods is indicated under the proposed GST framework but depends on final notifications. The purchase timing decision should balance anticipated tax credits against business needs and market considerations. (AI Summary)
Implementation timing of GST is uncertain; for inter state machinery purchases IGST will apply and input tax paid is expected to be creditable and set off against GST liabilities where the final product is taxable. Pre GST purchases attract Central sales tax and other duties with limited credit. Full input tax credit on capital goods is indicated under the proposed GST framework but depends on final notifications. The purchase timing decision should balance anticipated tax credits against business needs and market considerations. (AI Summary)