Latest Query & Reply

My client has purchase machinery in vat regime and he is doing business of nil rated in vat regime so he has not taken credit of vat.

Now he is selling this old machinery whether GST is applicable or not?

Reply

As per SCHEDULE I of CGST Act, 2017,  Permanent transfer or disposal of business assets where input tax credit has been availed on such assets is treated as supply, therefore, GST is applicable on sale of old asset where ITC was availed at the time of purchase of said asset.

In your case, as ITC was not availed in VAT regime, GST is not applicable.