Sale of Machinery

[Balaji Biradar]

Hello Experts,

My client is having machinery which he had bought in 2016 , since there is no business he closed down the factory . Now he is selling machinery worth 32 lakhs to Bangalore.

1. Whether he needs to take registration in gst , since the turnover exceeds 20 lakhs ?

2. Will it come under the definition of business as it not continuous.

Thanks in advance.

AI Summary

Client Selling Machinery Interstate Must Address GST Registration & ITC Repayment Under Section 18(6) of CGST Act. A client closed his factory and intends to sell machinery purchased in 2016 for 32 lakhs to Bangalore. He inquires whether GST registration is required, given that the turnover exceeds 20 lakhs, and if the sale qualifies as a business activity. An expert clarifies that the threshold exemption limit for goods is 40 lakhs, effective from April 2019, but this does not apply to interstate sales. Since the client was registered under VAT and availed input tax credit (ITC), he must follow Section 18(6) of the CGST Act and Rule 40(2) of the CGST Rules regarding ITC repayment.