Gst on sale of used car--company assets

This query is : Resolved

NK1976

NK1976 (Querist)
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04 April 2018 Dear Sir,
A Private Limited Company purchased Car in 2007 used by the Company Directors for Business purpose. Now the company want to sell the used car. We claim the depreciation on it and Company registered in GST-Rajasthan State.
The Car Registered on company director name in Mumbai & The Company in Rajasthan State & Car sold in Mumbai. Whether GST is applicable on Sales of Used Car. What is the GST Tax Rate in sales of used Car. Is we need to charge GST on sale of used Car?

Please advise in above matters as earliest.

Thank & Regards
N. K.

RAJA P M

RAJA P M (Expert)
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04 April 2018 If the Car is in Your company's books of accounts and the company is registered under GST then Yes GST applicable for the Sale of Used Car... GST rate as per New car in that segment...

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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05 April 2018 As per Schedule II of the CGST Act, transfer of business assets is supply of goods and hence GST would be applicable. The GST on used vehicles has been reduced by virtue of Notification 8/2018 Central Tax Rate read with State rate Notification and would be 18 or 12% as per such Notification depending on the vehicle sold. Further the compensation cess on the same is also exempted vide Notification 1/2018. Finally the GST rate would be applicable on the margin of supply which is the difference between the sale value and the written down value.

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NK1976

NK1976 (Querist)
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05 April 2018 The car sold to used Car Dealer. A Car dealer after some repairs sold to another person that time GST Applicable.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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05 April 2018 Yes, GST would be applicable.

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NK1976

NK1976 (Querist)
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06 April 2018 We can charge GST on sale of Used Motor Car to Car Dealer.
GST rate would be applicable on the margin of supply which is the difference between the sale value and the written down value.

The Motor Car Value as per Books as on 01.04.2017-- Rs.41000/-
The Depreciation for FY 2017-18- Rs.6150/-
WDV as on 31/03/2018.- Rs.34850/-

Car sold on 02/04/2018 - Sale Value is - Rs.85000/-

Margin of Supply-----RS.50150/-
GST @12% on RS.50150/- Rs.6018/-

Please reply

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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06 April 2018 Presuming the rate is correct for the type of car sold as per the Notification, calculation appears Ok.

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