GST RATE FOR USED MEDICAL EQUIPMENT

[RSuresh Goud]

Sir . We have trust Hospital. We purchased a medical equipment before 7 years back. now we want to sell that machine. now company accepted to buy the machine at 9 lakh. then how much GST rate we will collet from that company. Please Reply

REPLY

[DR.MARIAPPAN GOVINDARAJAN]

The buying and selling of second-hand goods will not attract Goods and Services Tax (GST) if sold at a price cheaper than the purchase price.

Rule 32(5) of the Central Goods and Services Tax (CGST) Rules, 2017, provides that where a taxable supply is provided by a person dealing in buying and selling of second hand goods or used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored.

[Yash Jain]

Dear Sir,

Gst will be levied on sale of equipment as it will amount transfer of asset. Value will be WAV or sale price whichever is less

However if you are trader, in second hand goods then not applicable, provided sale value is less than WDV.

Rgds

[RSuresh Goud]

Dear Sir,

thank you very much for your answer. sir i am full details of my problem. -please kindly answer me

We are running Hospital under public charitable trust Hospital. Hospital Units are Exempted from GST,However we made GST Registration under GST in order to account for reverse charges,rent etc. We are selling our Old UltraSonography machine,which was purchased on 23/03/2011 for ₹ 18,59,000.

Written down Value of above said machine as on today works out 5,09,912.

Now we are selling the above equipment to the supplier of medical equipment on byback basis against purchase of New Ultra Sonography Equoipment,for which supplier of machinery has agreed to adjust cost of byback old equipment for ₹ 9,00,000. Kindly intimate GST to be charged by us against sale of above said medical equipment. Kindly intimate rate of IGST and amount of IGST to be charged in bill

AI Summary

GST on sale of used medical equipment: valuation depends on written down value or second hand valuation rules.
GST on sale of a used medical machine depends on whether the supply is taxable and on second hand valuation rules: if no input tax credit was availed, the taxable value is computed under the second hand goods valuation method as the difference between sale and purchase price (negative values ignored). Alternatively, transfers of assets by a registered exempt entity have been assessed using the written down value or the sale consideration, with the lower amount applied in practice.