GST on Capital Goods

[CARajnikant Kalsariya]

My Capital Goods (Machinery) lost in Fire, My Reversible of GST on unused life of Machinery is less than tax on Scrap Transaction Value. is it true i m liable to pay tax only on scrap transaction value? not liable to reverse input of unused life of machinery?

AI Summary

GST on Machinery Fire Loss: Pay Tax on Scrap or Reverse Input Credit? Section 18(6) of CGST Act Examined. A discussion on the Goods and Services Tax (GST) implications for capital goods, specifically machinery lost in a fire, centers around whether tax should be paid on the scrap transaction value or if input credit for the unused life of the machinery should be reversed. One opinion suggests reversing credit if it exceeds the tax on scrap value. Another view argues that the situation isn't directly covered by the main provisions but aligns with Section 18(6) of the CGST Act, requiring payment of the higher amount between the input tax credit and the tax on the transaction value. It is noted that if the asset is over five years old, only tax on scrap is payable.