What are the provisions in GST regarding revaluation of fixed assets. If a person revalues (upward revaluation) his fixed assets by increasing their book value and creating a revaluation reserve, will he still be liable to pay GST on the capital gains. Suppose a person who has not claimed input credit on his fixed asset wishes to sell such fixed assets in the following scenario: Suppose WDV is Rs 10 lakhs Sale Price is Rs 15 lakhs Now a client revalues his assets so that WDV is 15 lakhs and creates a revaluation reserve of Rs 5 lakhs. He later sells the asset for 15 lakhs (WDV is also 5 lakhs now in the books), will he still be liable to pay GST on Rs 5 lakhs?

Reply—  As per Schedule II CGST Act, Para 4(a) transfer of Business asset will be treated as supply of Goods. GST is required to collect on sale of capital asset on transaction value.