HOW MUCH PERCENTAGE GST CHARGE WHEN WE REMOVE OLD MACHINERY AS SCRAP

[BHAKTIKANT BHATT]

sir,

WE HAVE PACKAGING INDUSTRIES MANUFACTURING A PLASTIC FILM ROLL. WE WANT TO REMOVE ONE OLD MACHINERY AS A SCRAP(USE APPROXIMATELY ABOVE 10 YEARS)

KINDLY TELL ME HOW MUCH PERCENTAGE GST WE NEED TO CHARGE ON SCRAP VALUE BILL OF OLD MACHINERY REMOVE FROM FACTORY.

KINDLY GIVE YOUR VALUABLE SUGGESTION

THANKING YOU

[Alkesh Jani]

Sir, my point of view is that, as the machinery is 10 years old, the value shall be the transaction value and 18% (CGST+SGST) is applicable.

[Ganeshan Kalyani]

gst is payable on transaction value.

AI Summary

Transaction value: GST is payable on consideration received for scrap machinery, treated as the taxable base under GST. The query concerns GST on disposal of an old factory machine as scrap; both replies state GST is payable on the transaction value of the scrap sale, and one reply specifies application of an eighteen percent composite rate (CGST+SGST) to that transaction value.