SALE OF USED MACHINERY

[SUNDARA MOORTHI]

MACHINERY PURCHASED DURING VAT REGIME IN 2012. VAT INPUT TAX NOT AVAILED.

DEPRECIATION CLAIMED UNDER INCOME TAX AS PER IT RULES.

THE USED MACHINERY IS BEING SOLD OUTSIDE THE STATE. (INTERSTATE)

THE ISSUE IS WHAT IS THE RATE OF GST AND ON WHAT VALUE.?

NEED A DETAILED REPLY ASAP.

AI Summary

GST on Interstate Sale of Used Machinery: Tax on Depreciated Value, No ITC Impact, Section 18(6) Not Applicable A query was raised regarding the sale of used machinery purchased during the VAT regime in 2012, for which VAT input tax was not availed, and depreciation was claimed under income tax rules. The machinery is being sold interstate, prompting questions about the applicable GST rate and value. Responses indicated that GST should be paid on the depreciated value using methods like the written down or straight line. The GST rate depends on the machinery type, with no distinction between new or old machinery. Since no ITC was claimed, section 18(6) of GST is not applicable.