Capital goods purchase for exempted unit and sold out
Query (Issue) Started By: – Vinod Daga Dated:- 26-9-2018 Last Reply Date:- 3-10-2018 Goods and Services Tax – GST
Got 4 Replies
GST
I have purchase some capital goods by paying GST on it. As I am selling goods which are exempted under GST so I have not taken any input against this. I am registered in GST and paying GST of some taxable turnover.
\nAfter 3 years I have sold out this, Now my question is whether I have to charge GST on these capital goods, if yes then its not double taxation or can I availed input credit on the same now.
\nReply By Yash Jain:
\nThe Reply:
\nDear Sir,
\nAs your finished prodcuts was exempted from Tax and simultaneously you were not allowed ITC, hence i<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n uilt taxes in my cost for which I can't take input( as section 18 says if exempted goods become taxable than also input can be taken only when invoice is not older than 12 months). That's the reason i m calling it double taxation on that w d v value = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ₹ 162\/- (i.e. being the higher of ₹ 144\/-). And the net GST liability shall be Rs. 18\/- after utilizing ITC of ₹ 144\/-. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Capital goods purchase for exempted unit and sold out Query (Issue) Started By: – Vinod Daga Dated:- 26-9-2018 Last Reply Date:- 3-10-2018 Goods and Services Tax – GSTGot 4 RepliesGSTI have purchase some capital goods by paying GST on it. As I am selling goods which are exempted under GST so I have not taken … Continue reading “Capital goods purchase for exempted unit and sold out”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14057","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14057"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14057\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nplease also note that in case of vehicle under HSN code 8703 Govt has given a provision that if we any person sold such capital goods and not taken any input credit than he has to pay tax only if he is selling that capital goods for more than w d v value.
\nso my query is whether above provision is applicable for all capital goods (where input is not taken) or not.
\nReply By VaibhavKumar Jain:
\nThe Reply:
\nThe query may be explained through below example –
\nCost of capital goods say ₹ 1000\/<\/p>\n
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\nReply By Vinod Maheswari:
\nThe Reply:
\nDear Mr. Vaibhav
\nIn case if I am supplying it after 1 Year (12Months) then its ok I can take input credit as per section 18 1(d) read with section 18(2). but what if I am supplying such capital goods after 15 months or after 60 months.
\nAs per section 18 1(d) I can avail input credit on capital goods which first used in exempted supply but late on when I want to sold it, it become taxable supply as per section 7. but section 18 (2) restrict to take such input if only Invoice are only 12 months old so if I am selling such capital goods after more than 12 months then<\/p>\n
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