On Sale of Capital Goods

 

On Sale of Capital Goods,we have to pay tax on Transaction Value(Sales Price)

However if asset is sold within 60 months,then we have to Calcuate Input Reversal (Credit- 1/60 per Qtr)

We have to pay GST which ever is higher of the two

 

Summary

 

SALE OF CAPITAL GOODS

AFTER 60 MONTHS BEFORE 60 MONTHS
GST AS PER SALES PRICE GST AS PER SALES PRICE
  OR
  GST Taken-1/60 Per Month Used
  Which Ever Is Higher

 

Q1 - Suppose Machine Purchased on 19 July 2017 as follows

PARTICULARS AMT
MACHINE 100000
CGST 9000
SGST 9000
TOTAL 118000

IT IS SOLD ON 23 OCT 2017 FOR 60000

View Answer

Q2 - Suppose Machine Purchased on 19 July 2017 as follows

PARTICULARS AMT
MACHINE 100000
CGST 9000
SGST 9000
TOTAL 118000

IT IS SOLD ON 23 OCT 2022 FOR 60000

View Answer
  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.