ITC billing on sale of capital goods.

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....TC billing on sale of capital goods.<br> Query (Issue) Started By: - Gourav Ravi Garg Dated:- 21-4-2026 Last Reply Date:- 30-4-2026 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>I purchased a capital goods (machine) to make exempted good and didn&#39;t avail ITC also. Now I wants to sell the machine in scrap. How should I show the billing of the machine? Do I have to pay the GST still? ....

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.... Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Dear Querist GST will be applicable on the sale value. Issue no.118653 discusses this point. Reply By NYAYASETU LEGAL ASSOCIATES LLP: The Reply: Yes, you being a GST registered person has to pay GST on scrap sale of machine irrespective of the facts whether you avail ITC or not. GST is calculated on transaction value, no need to....

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.... compare the tax on transaction value with remaining ITC since you did not avail ITC at all but it is confirmed that you have to pay GST on scrap sale. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Issue no.118653 of 2023 Reply By KASTURI SETHI: The Reply: GST is payable on the sale of capital goods as scrap. It is covered under Section 7 (1) (a) of CGST Act. Emphasis is l....

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....aid on the term, " all forms of supply". Resale is also a sale. Reply By Shilpi Jain: The Reply: Sale of machine will attract GST liability since this is not dependent on availing/non-availing of credit at the time of purchase. How many years has it been since you have purchased the machine? If s 16(4) time limit exists then you can avail eligible credit for the balance useful life of the ....

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....asset. If not, you will not be able to take credit. Reply By Pinnacle Tax Advisor: The Reply: Yes, The liability to pay GST will arise on the transaction value irrespective of ITC availed or Not<br> Discussion Forum - Knowledge Sharing ....