Capital Asset - Plant and Machinery introduced by incoming partner in partner ship firm

[anuja bhandari]

A proprietor firm unregistered in GST has plant machinery in Assets. The proprietor in individual capacity will be introduced as partner in partnership firm and will introduce the plant and machinery as capital introduction. WDV of plant and machinery is 1 crore. Plant and Machinery is purchased pre GST period by proprietor. Will GST be applicable on capital asset introduced by incoming partner?

AI Summary

Self-consumption by partners: introducing capital assets into a partnership does not attract GST where firm and partners are one entity.
A partner's introduction of pre-GST plant and machinery into a partnership as capital is characterised as self-consumption rather than a supply to a separate taxable person; because partners and the partnership are not distinct legal persons for GST purposes, such intra-person transfers do not attract GST liability under the related person supply provisions.