Sale of motorcar used for business

This query is : Resolved

arvind r shah (Querist)
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13 July 2020 Car sold to non gst person
On what tax to be charged sale minus dep as per it or per book? Whether to prepare tax invoice? How to show in Gstr 3b& gstr1?
If senerio sold to regular gst person what will be the position? Documantation in both case.

Gokul Sharma

Gokul Sharma (Expert)
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13 July 2020 GST Should NOT be paid.BECAUSE IT IS YOUR FIXED ASSET.
Capital Gain needs to be pay.

if it is your business to sale old vehicles then GST Applicable and to be pay on margins.

Lekhraj sood

Lekhraj sood (Expert)
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13 July 2020 Valuation of used car- If depn is claimed in IT, then sale value less WDV as per IT.
If depreciation not claimed in IT then sale vale less purchase value.
Rate of GST will be 18% and you have to raise the tax invoice irrespective of whether buyer is registered under GST or not.

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