Taxability

[VIGNESH]

Sir Mr.A registered under GST and doing jeweler business , has purchased computer accessories and booked as expenses and he claimed ITC, now he wish to exchange the product for a new one and sold the same to Mr.B. Should he raise a invoice for the sale made by him to Mr.B who is also a registered person. will the treatment change if it is an asset. - GSTimplication!

[Ganeshan Kalyani]

Sir, the GST on sale value to be paid if asset was booked as expense. If it was capitalsed in books then GST on sale value and ITC of remaining life of the computer to be worked out and whichever tax is higher that is payable.

AI Summary

GST on sale of computer accessories: pay the higher of tax on sale value or unutilised input tax credit.
If the item was expensed after claiming Input Tax Credit, GST is payable on the sale value. If the item was capitalised, compute GST on sale value and the Input Tax Credit attributable to the remaining life, and pay the higher of the two amounts.