TAXABILITY OF SALE OF SECOND HAND PLANT MACHINERY

[NAMAN DOKANIA]

M/s Xyz a partnership firm unregistered in GST is selling his old plant and machinery to M/s AbC unregistered located in another state for a value of ₹ 18lakhs. m/s XYZ, seller has purchased the machinery in preGST era.

Will M/s XYZ need to charge gst on dat? if yes den wat will be the transaction value

[Ganeshan Kalyani]

Yes, GST is payable by M/a XYZ

[Atul Rathod]

Yes, Compulsory registration for inter state supply irrespective of turnover

How to calculate the trasanction value?

[KASTURI SETHI]

Transaction value can be arrived at by way of adopting depreciation methods as per accounting principles. There are 4 depreciation methods. Since the unit was unregistered, no credit was taken on the capital goods.

AI Summary

GST on sale of used plant machinery: inter-state transfer triggers tax and mandatory registration.
Sale of second-hand plant and machinery across state borders attracts GST and triggers compulsory registration for the seller irrespective of turnover; transaction value should be determined by recognised depreciation or valuation methods, and absence of prior input tax credit on the capital goods (because the unit was unregistered) affects but does not eliminate current GST liability.