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Supply - Disposal
Hi team, as per GST the word DISPOSAL is refering to only capital asset and machinery or any disposal that has to be in a situation to be measurable in monetary terms? Because my query is that some disposals worthless and we cannot assign any value to it. Please make me clear
Answers (7)
Schedule I states that permanent disposal of assets even if made without consideration has to be treated as supply where ITC has been availed on such assets. This means that even writing off of capital goods will be treated as a taxable event. According to Schedule II the following conditions should be satisfied for sale of capital goods to be a taxable event 1)goods should form part of business assets 2) the goods no longer form part of business. 3) goods are transferred under the instructions of the person carrying on the business. (Hence in case of calamity like fire, accident, theft there will be no liability to pay tax.
