GST

 Taxpayers planning to sell their fixed assets

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At present, whether sale of fixed is subject to VAT or not, is a matter of litigation. Some High Courts are of the view that unless the sale is incidental to the main business of the dealer, it would not be subject to VAT. The Delhi High Court in the case of Anand Decor held that, if the dealer has not claimed input tax credit at the time of purchase due to restriction under the Act or otherwise, then, to avoid double taxation, sale of such goods would not be subject to VAT. However, there are no such provisions for exemption under the GST.

Therefore, where any dealer is in the process of selling capital assets due to various reasons, such as, assets become obsolete, discontinuance of business, or otherwise, he must speed up and dispose of his assets before the appointed day.

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