Respected experts,
Requesting your opinion the impact of GST on the below scenarios on transfer of business assets (depreciation is claimed for the basic value) to employees upon officially relieving from the organisation:
1. Sale of assets where ITC is claimed (on the taxable value), eg. laptops
2. Sale of assets where ITC is not claimed, eg. mobile phones
3. Sale of assets in both the above 1 and 2 scenarios when there is WDV value and same is recovered from the full and final settlement of the employee
4. Sale of assets in both the above 1 and 2 scenarios when there is no WDV value and same is not recovered from the full and final settlement of the employee.
Thank for your support
GST on asset transfers to exiting employees depends on taxable supply, consideration or OMV; ITC and WDV implications Where business assets are transferred to employees on exit, GST treatment depends on whether the transfer is a taxable supply and on consideration. If ITC was availed, a sale to an employee is generally a taxable supply and GST is payable on the transaction value (amount recovered) or, if no consideration, on the open market value (OMV). If ITC was not claimed, GST may still apply if consideration is received; absent consideration, OMV is the taxable value where a supply is deemed. Written-down value (WDV)/depreciation affects accounting but not the GST taxable base, which is the amount recovered or OMV. Specific rates, invoice treatment and any ITC reversal should be confirmed against applicable GST provisions and authority guidance. (AI Summary)
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