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Sale of Old Machinery, Goods and Services Tax - GST

Issue Id: - 116633
Dated: 19-8-2020
By:- Rajendra Prasad
Sale of Old Machinery

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Dear Sir,

I am owning a Factory. The product is exempt under VAT Act and GST Act.

I have set up this unit 10 years back. No ITC was taken either in the VAT Law / GST Law. Now also the factory is not registered under GST as sale is fully exempt.

Now I am seeling the old Plant & Machinery for ₹ 75.00 Lacs.

Is the transaction liable for GST.

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Posts / Replies

Showing Replies 1 to 8 of 8 Records

1 Dated: 19-8-2020
By:- Rajagopalan Ranganathan


The reply to your query is 'no' since you manufacture exempt goods and you have not availed input tax credit of tax paid on capital goods.

2 Dated: 20-8-2020

In this connection you need to give reference of your old Invoice against which you had procured such P&M without availing the CENVAT and ITC Credit, while selling the goods by issuance of Bill of Supply. Fixed asset register and a certificate from CA will also required.

3 Dated: 20-8-2020

I support the views of both experts.

4 Dated: 21-8-2020

It is supply as per section 7 of CGST Act. The machinery itself is not exempt. Value of supply is more than 20 lakh you need GST regn. also.

In my view you have to pay GST @ rate as per HSN of machinery you are going to sale.

5 Dated: 8-12-2020
By:- Resham Sidhu

I agree with Mr Sharda Nanda

6 Dated: 17-12-2020

The products sold by them are exempted and not the Machinery they sell when it is valued more than 20 lakhs. The activity is liable for GST

7 Dated: 18-12-2020
By:- Guravaiah Manam


8 Dated: 26-12-2020
By:- AM Sameer

The Transaction is taxable irrespective of INPUT TAX Credit availed or not


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