An assessee has purchased machinery in VAT regime. Vat paid has been capitalized and depreciation claimed. Now machinery is to be sold. Pl advise whether gst has to be paid on sales value. Which value to be considered for payment of GST. Wdv Or sale value

Reply—GST is necessary to collect on sale of old machinery, refer Schedule II (transfer of Business asset) of CGST Act, 2017.  It does not matter whether taxpayer has availed input tax credit or not. If there is involvement of consideration, GST will be applicable on transaction value.

Transaction value will be the taxable value in case of sale of old machinery. Margin method is applicable only for dealers of second hand goods or in case of sale of old and used vehicle.