Taxability of capital goods (machine) when no ITC availed?

[Rajat Gupta]

My client purchased a machine when he did not have any GST registration. Later on, after obtaining registration, he did not claim its ITC as well. Now he wants to sell the machine. Is he bound to charge tax on sale of machine or is there any exemption in this case?

AI Summary

Sale of unutilised capital machine after GST registration still taxable as supply u/ss 7 and 9 CGST A querist describes a client who purchased a machine prior to obtaining GST registration. At the time of purchase, the client was unregistered and therefore did not claim input tax credit (ITC). After subsequently obtaining GST registration, the client still did not claim ITC on this capital good. The client now intends to sell the machine and seeks clarification on the GST implications of such sale. The specific issue raised is whether GST must be charged on the sale of this machine despite no ITC ever having been availed, or whether any exemption or relief from GST liability applies in these circumstances.