SALE OF PLANT AND MACHINERY

[lagudu sivakumar]

Hai Sir,

One of our client is a Composition dealer, and now they want to sell their Plant and Machinery, purchased before 2017,

1. whether it is taxable , if it is taxable whether invoice is raised

2. what is the gst rate( as a composition dealer can we give invoice at 1% or other rate)

Please give your suggestions

Thanking You Sir

[Nikhil Chittora]

Invoice at 1% only

[V Rajalakshmi]

Dear Mr Lagudu Sivakumar

I am of the opinion that your client can raise Inv with 1% GST at the same time ask him to check his overall turnover after the addition sale of the machine and whether it does not exceed the prescribed limit.

AI Summary

Composition scheme GST rate applies to sale of plant and machinery where dealer remains within turnover threshold.
A composition scheme taxpayer selling used plant and machinery should issue an invoice under the composition arrangement charging the composition levy, and must verify that post sale aggregate turnover remains within the statutory composition threshold so as not to lose eligibility and attract regular GST compliance.