Sale of Old Machinery

[Rajendra Prasad]

Dear Sir,

I am owning a Factory. The product is exempt under VAT Act and GST Act.

I have set up this unit 10 years back. No ITC was taken either in the VAT Law / GST Law. Now also the factory is not registered under GST as sale is fully exempt.

Now I am seeling the old Plant & Machinery for ₹ 75.00 Lacs.

Is the transaction liable for GST.

AI Summary

Taxability of sale of used machinery: such disposals can attract GST and require registration when value exceeds threshold.
Disposal of used plant and machinery is treated as a supply under GST and generally taxable; when the transaction value exceeds the statutory registration threshold the seller must register and charge tax at the HSN based rate. Non availment of input tax credit on acquisition affects invoicing and evidence requirements (bill of supply, original invoices, fixed asset register, CA certificate) but does not by itself negate taxability; some practitioners note a contrasting practical view reliant on documentary proof where goods manufactured are exempt.