GST APPLICABILITY

[Shuchita tripathi]

There is a private hospital selling its machine to another party who resides in another city. My query is whether GST will be applicable to that sale and if yes then how much and what is the law's point of view on that?

[Yash Shah]

If the hospital is operational under separate trust which is registered under section 12AA of Income Tax Act,1961 - then might be exempt else the supply of such machinery would fall under the definition of supply under section 7 of the CGST Act, 2017 - in course or furtherance of business and hence taxable. Rate of tax and HSN would depend on what type of machinery sold.

[Shilpi Jain]

The the sale of machinery would be liable to gst as it is an interstate supply and will entail compulsory registration.

AI Summary

GST on inter state sale of hospital machinery: taxable unless charitable trust exemption applies, and registration is required.
If the hospital operates through a trust enjoying a charitable exemption the transfer may fall outside GST; otherwise the disposal of the machine constitutes a supply in the course or furtherance of business and is taxable. The applicable tax rate and HSN depend on the machinery type. As the buyer is in another state, the transaction qualifies as an interstate supply, requiring the supplier to obtain GST registration.