14 February 2018
"A" is an individual with an annual turnover from services of Rs. 15,00,000/-. Therefore "A" did not get registered under GST. "A" purchased a motor car during the year and used it for the purposes of conveyance. The motor car was sold by "A" for Rs. 7,00,000/- during the year. "A" has not take input tax credit since A is unregistered. Request the experts to reply whether the sale of the motor car will be considered part of "A"s aggregate turnover necessitating "A" to get registered under GST Law [i.e. 15,00,000 + Rs. 7,00,000] ?
15 February 2018
the reason i asked is Schedule II as referred under Section 7 specifically covers disposal of assets of a business as a supply.
can you explain why you say it will not be considered as turnover and why GST will not apply
15 February 2018
The statement by Mr Adhia, was probably made at the time of introduction of GST and in the context of sale being done by an individual who is not in business. The sale therefore being of a personal asset. In any case, Mr Hasmukh Adhia's statement cannot be considered law.
I agree that the sale of motor car, by the individual is not being made in the course of or for furtherance of business. But it looks like it will be covered by the transactions specified to be "Supply" appearing in Schedule II to the Act.
Logically, i am of the view, that such a transaction should not be counted as a supply, particularly for the purposed of determining whether a person has crossed the threshold since sale of business asset can surely be considered to be a one-off type of transaction. However, the legal provisions in the Act, do not seem to support this logic.
CAclubindia
