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GST Applicability on Business Asset Transferred as Personal Asset, Goods and Services Tax - GST

Issue Id: - 117330
Dated: 3-7-2021
By:- Punit Agarwal
GST Applicability on Business Asset Transferred as Personal Asset

  • Contents

What is the GST applicability on Business Asset (Inventory: Building Work in Progress) which is transferred as capital Asset in person file due to flat is not sold.

NO ITC is availed by the assessee as it was of Service tax era.

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Showing Replies 1 to 6 of 6 Records

1 Dated: 4-7-2021
By:- Shilpi Jain

If it's a unit where the completion certificate is received, no gst liability

2 Dated: 5-7-2021
By:- Punit Agarwal

What if completion certificate not received till date. As the flat is not yet completed???

3 Dated: 6-7-2021
By:- Shilpi Jain

It can be argued that it is an immovable property which is sold and thereby no gst liability. However the dept would contend it to fall under sch II entry 5b and thereby liable to gst. If commercial 18% else 7.5%

4 Dated: 6-7-2021
By:- Punit Agarwal

Shilpi ji,

I am a bit confused. I suppose I have provided incomplete details about the facts.

Please help me with this complete facts.

The assessee is a private limited company where he has inventory of building which is unsold as on date. The building was of service tax era. No ITC claimed under GST. No completion certificate received till date.

As the company is unable to sale the flat the management has decided to capitalise the assets in the company books of accounts for renting the property in future.

No does the liability to pay GST arises for mere transfer of property from inventory to fixed assets register.

Thanks and regards

5 Dated: 6-7-2021

Notfn No.05/2019 & 04/2019

6 Dated: 7-7-2021

Dear Punit Ji,

It's just the book adjustment. Ownership never changes, there is no supply involved. Seems impossible to call the builder/company as a supplier and recipient at the same time.

Stock-in-trade (inventory) to capital assets, to my view, just a book adjustment where ownership never changes. So, if there is no supply then no GST.


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