Sir/Madam, my client is a partnership firm purchasing a solar plant and machinery and land separately from an NRI individual. She is not registered under GST law and no intention to do business in India.
She purchased this land and plant & machinery through a slum sale agreement from Private limited company where she is a director. She is owning this asset in Individual capacity and want to sale to partnership firm.
Is GST applicable in this transaction? Is RCM payable by the Purchaser firm on this transaction?
Please advice
NRI Sells Land and Solar Equipment: GST Applies to Machinery, Not Land; No RCM for Buyer Firm A partnership firm is purchasing land and solar plant and machinery from a non-resident individual (NRI) who is not registered under GST law. The NRI acquired these assets through a slum sale agreement and intends to sell them in an individual capacity. The discussion revolves around whether GST is applicable to this transaction and if the purchaser firm is liable for reverse charge mechanism (RCM). Responses indicate that the sale of land is exempt from GST but subject to stamp duty, while the sale of plant and machinery is taxable. The NRI may need GST registration if the transaction value exceeds the threshold. There is no RCM liability for the firm as the transaction does not involve import of services. (AI Summary)
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