TaxTMI 
TaxTMI 
Sale of Machinery
X X X X Extracts X X X X
X X X X Extracts X X X X
....ale of Machinery<br> Query (Issue) Started By: - Balaji Biradar Dated:- 2-5-2019 Last Reply Date:- 4-5-2019 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Hello Experts, My client is having machinery which he had bought in 2016 , since there is no business he closed down the factory . Now he is selling machinery worth 32 lakhs to Bangalore. 1. Whether he needs to take registration in g....
X X X X Extracts X X X X
X X X X Extracts X X X X
....st , since the turnover exceeds 20 lakhs ? 2. Will it come under the definition of business as it not continuous. Thanks in advance. Reply By KASTURI SETHI: The Reply: Threshold exemption limit for goods has been increased to ₹ 40/-. from 1.4.2019. States were given option whether to increase the limit to ₹ 40 lakhs or not. Reply By KASTURI SETHI: The Reply: Pl. read as "i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncreased to ₹ 40 lakhs". Were you registered with the department in 2016 when you purchased machinery ? If so, whether you have taken credit on the said machinery at that time ? Sale of old and used machinery falls under the definition of "supply" under CGST Act as this supply is in the course of business. It is evident this sale/supply will be from B2B and not from B2C. Pl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....reply to my questions so that correct reply be posted. Reply By Balaji Biradar: The Reply: Sir it's an interstate sale so 40 limit will not be applicable for him. Yes he was registered under vat and itc was availed . Reply By KASTURI SETHI: The Reply: Follow Section 18(6) of CGST Act read with Rule 40(2) of CGST Rules. You shall pay the amount equal to input tax credit taken as reduced b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y 5% point as per Rule 40(2) or on the transaction value under Section 15, whichever is higher.<br> Discussion Forum - Knowledge Sharing ....