Hello Sir,
I m akhilesh joshi government contractor. My firm M/S Subhash joshi construction, barwani m.p. is dealing in government road contract. The issue is my firm Resale of some our plants & Machines and also purchasing reused plant & machines, so that our C.A. is suggested to resale our plant to be charge 18% GST & also purchase reused plants and machines to pay 18% GST.
Is that true? Please guide us with reference of notification no.
Please we are waiting your reply.
Thank you.
Regards
Akhilesh joshi
Contractor Questions 18% GST on Used Construction Machinery; Section 18(6) of CGST Act 2017 Explained by Respondents A government contractor inquires about the applicability of an 18% GST on the resale and purchase of used construction plant and machinery. The contractor's CA advised charging 18% GST on both transactions. A respondent cites Section 18(6) of the CGST Act, 2017, explaining that GST is payable on the higher of the input tax credit taken or the transaction value of the goods. Another respondent concurs, noting that the GST rate may vary depending on the specific machinery, and suggests that the CA's advice may be accurate based on an analysis of the firm's assets. (AI Summary)