If a not-for-profit body claims GST input credits for an asset, these would be treated as part of the not-for-profit's taxable activity.
When GST is payable on the sale
When the asset is sold or otherwise disposed of, GST will be payable on the sale.
The same treatment will apply for any event equivalent to a sale. For example, an insurance pay out or when GST deregistration occurs.
Where you have assets that are not being used as part of your taxable activity
Transitional measures will apply for the 24 months till 1 April 2021.
Electing and repaying GST
You can elect in this period and repay any GST claimed on the asset. It will then be treated as not being part of your taxable activity. No GST will be payable when the asset is eventually sold or otherwise disposed of.
The election and repayment of the GST must be made by 31 March 2021.