NON RESDIENT INDIVIDUAL SELLING PLANT & MACHINERY

[CABayyaReddy DK]

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

AI Summary

GST treatment of asset sale: plant and machinery taxable while land is exempt; purchaser not liable under reverse charge.
Land is exempt from GST under Schedule III and thus not a taxable supply, while sale of the solar plant and machinery is a taxable supply of goods subject to GST under the rate schedule and is payable under forward charge. Reverse charge does not apply to the purchaser. If transaction value exceeds registration thresholds the NRI should obtain GST registration, including temporary registration as a Non Resident Taxable Person. The going concern exemption may apply only if the transfer is of a continuing business or identifiable undertaking; otherwise GST applies and allied stamp duty and income tax (TDS, capital gains) consequences must be considered.