GST RATE FOR USED MEDICAL EQUIPMENT FOR Charitable Hospitable

[RSuresh Goud]

Dear Sir,

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

[Yash Jain]

Sir,

Sale of ultrasonics machine is transfer of business assets

As you are not trader of assets, hence gst will be charged on 900 thousand.

Comments from other esteemed members solicited.

[RSuresh Goud]

Thank you very much sir. Then we have to charge on total 900000. at 12 %. is it clear?

AI Summary

Transfer of business assets: GST payable on agreed buyback consideration for used medical equipment; rate applicability queried. A charitable hospital registered for GST (despite exemption) proposes a buyback sale of a used ultrasound machine for an agreed consideration of 900,000. The advisory note records the sale as a transfer of business assets and states that GST should be charged on the agreed buyback consideration; the hospital asks whether a 12% GST rate and IGST should be applied on that amount.