Sale of old machinery under gst

[Allauddin Patel]

My question 

Dear sir ..

I works in cotton ginning factory (regular taxpayer)..

Can we purchase old ginning machinery and sale this machinery later??

Assume if we purchase 

Taxable value 1000000

Input tax  180000 (18%)

Later sale 

Taxable value  1200000

Output tax 216000 (18%)

Can we do this 

AI Summary

Cotton ginning factory can buy and resell old machinery under GST with input tax credit available A cotton ginning factory operator inquired about purchasing and reselling old ginning machinery under GST. The query involved buying machinery for Rs. 10 lakh with 18% input tax credit of Rs. 1.8 lakh, then selling for Rs. 12 lakh with 18% output tax of Rs. 2.16 lakh. Tax experts confirmed this transaction is permissible for regular taxpayers as machinery purchases aren't blocked under Section 17. Input tax credit can be claimed on purchase with proper documentation, and GST must be charged on sale. The operator also asked about selling as scrap and appropriate HSN classification requirements for tax invoices.