Shifting of machineries - would we be required to pay GST on such movement of capital goods?

Since our present and new units (situated within Tamilnadu state) have the same GSTIN. We would like to shift a few used machinery to the new unit. In such circumstances, would we be required to pay GST on such movement of capital goods? for what value do we have to raise the DC & e-way bill? ( value of machinery at purchase price or depreciated value )

Hi,
In the scenario where our present and new units share the same GSTIN within Tamil Nadu state, and we intend to transfer used machinery to the new unit, the question arises whether GST is applicable on such movement of capital goods. Additionally, there is a query regarding the value at which we should raise the Delivery Challan (DC) and e-way bill - whether it should be based on the purchase price of the machinery or its depreciated value.

In this situation, it is important to note that as per the GST laws, any movement of goods between different locations of the same entity with the same GSTIN is considered as a supply. Therefore, GST would be applicable on the transfer of used machinery to the new unit, even if it is within the same state.

When it comes to determining the value for raising the DC and e-way bill, it is advisable to consider the depreciated value of the machinery rather than its original purchase price. This is because GST is levied on the transaction value, which in the case of used machinery would be the depreciated value at the time of transfer.

In conclusion, it is essential to comply with the GST regulations and ensure that the movement of capital goods between units with the same GSTIN is properly documented and taxed accordingly. By considering the depreciated value of the machinery for raising the DC and e-way bill, you can ensure compliance with the GST laws while transferring assets within your organization.

Thanks,