Gst on old car sale
This query is : Resolved
30 January 2018
we have purchase a car 3 year ago in the name of company, now we are selling the car to a Individual or registered person.
What should be % of GST charged?
1. When the old car sale to Individual?
2. When the old car sale to registered person?
Regards,
Naresh
What should be % of GST charged?
1. When the old car sale to Individual?
2. When the old car sale to registered person?
Regards,
Naresh
30 January 2018
GST not applicable on such sale. GST applicable only on margin amount of old car traders.
30 January 2018
You need to raise a tax invoice along with cess as applicable to both Individual and registered person.
30 January 2018
kindly explain properly its a company assets????
30 January 2018
Big Relief on Sale of Old and Used Vehicles:
Government by issuing the Notification No. 8/2018 Central Tax Rate read with state Tax Notification, reduced the Rate of GST on old and used vehicle as follows:
1. GST-18% on Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more.
2. GST-18% on Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm
3. GST-18% on Old and used motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.
4. GST-12% on All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3
Note: Government also Exempted the Cess applicable on sale of Used vehicle through Notification No. 1/2018 Compensation Cess Rate.
Valuation of Old or Used car for GST Calculation
Value on which GST at above rates to be calculated shall be Margin of Supply which is to be calculated in the manner as mentioned in Notification which is given below:
1. In Case Depreciation under Income Tax Act Availed: Margin of supply shall be difference between Sale consideration and Written down Value and tax to be calculated on such Margin, and where the margin of such supply is negative, it shall be ignored.
2. In other cases: Margin of Supply shall be difference between sale price and purchase price Tax to be calculated on such Margin, and where the margin of such supply is negative, it shall be ignored;
Government by issuing the Notification No. 8/2018 Central Tax Rate read with state Tax Notification, reduced the Rate of GST on old and used vehicle as follows:
1. GST-18% on Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more.
2. GST-18% on Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm
3. GST-18% on Old and used motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.
4. GST-12% on All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3
Note: Government also Exempted the Cess applicable on sale of Used vehicle through Notification No. 1/2018 Compensation Cess Rate.
Valuation of Old or Used car for GST Calculation
Value on which GST at above rates to be calculated shall be Margin of Supply which is to be calculated in the manner as mentioned in Notification which is given below:
1. In Case Depreciation under Income Tax Act Availed: Margin of supply shall be difference between Sale consideration and Written down Value and tax to be calculated on such Margin, and where the margin of such supply is negative, it shall be ignored.
2. In other cases: Margin of Supply shall be difference between sale price and purchase price Tax to be calculated on such Margin, and where the margin of such supply is negative, it shall be ignored;
30 January 2018
As per my opinion, the same applies only to the dealers who is dealing in buying and selling of second hand goods and not for other taxable persons.
30 January 2018
Dear SEETHARAMAN Sir, Any comment on Mr. Udaya Chandran reply.
30 January 2018
I don't agree with his reply.
31 January 2018
@ Mr. CA R Seetharaman, Dear Sir, please explain if margin scheme is different from the above notification.
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04 March 2018
GST applicable on sale of old /used car by a company at the rates mentioned in Notification No 8/2018 - Central Tax (Rate) Dated 25th January 2018. As per note No 1 of said notification, transaction value shall be difference between sale price and WDV as appearing in the books of seller. Since a car dealer can not claim depreciation on car purchased by him (being trading goods), this notification will apply to all types of sellers of car, i. e company as well as car dealers
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04 March 2018
Mr.Udaya Chandran margin scheme applicable to car dealers.
For companies sale of used old car GST applicable on sale value in excess of WDV.
For companies sale of used old car GST applicable on sale value in excess of WDV.
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