TMI BlogGST on re-possessed asset by Nationalized BankX X X X Extracts X X X X X X X X Extracts X X X X ..... A nationalized bank repossessed assets from defaulting borrower who is registered under GST. The original cost of plant and machinery purchased by the borrower before 2 years was 50 lakh and GST paid by him was 9 lakh. Bank is able to sale this machinery at 25 lakh. Amount outstanding in the borrower account is 27 lakh. On what value GST will be applicable. - Reply By DR.MARIAPPAN GOVINDARAJAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Reply = In my view margin scheme under Rule 32(5) will be appliable. Since the second sale is less than the first sales, no GST will be attracted. Views of experts are solicited. - Reply By Mahir S - The Reply = If the Assets is repossessed from the defaulting borrower, then purchase price (of second hand purchaser -- herein Bank) in such case will be calculated as Original Purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price less Five percentage points for every quarter or part thereof. - Reply By SHAILENDRA PORWAL - The Reply = Proviso to Rule 32(5) is applicable for defaulting borrower who is unregistered. Hence, for URP borrower, Purchase Price will be equal to Purchase Price reduced by five percentage points for every quarter or part thereof, between the date of purchase and the date of disposal by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person making such repossession. In case of Registered borrower, whole consideration shall be taxable - GST on re-possessed asset by Nationalized Bank - Query Started By: - SHARAD ANADA Dated:- 29-7-2020 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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