Used car sale gst implication query
This query is : Resolved
21 April 2018
Dear Sir/Madam, we are into jewelry manufacturing business, recently we sold two cars which are on company name purchased before GST regime for which vat is also not claimed. These two vehicles were sold to for an exchange of a new vehicle to the Harsha Toyota showroom for value of 630000 in which one vehicle is less than 1500 cc and the second vehicle more than 1500 cc. Request you to kindly answer my following question:
1. Do i need to pay any GST for the vehicles sold as exchange for purchase of new vehicle.
2. How much GST need to to be paid if so for the old vehicles? Is there any different rates for above and below 1500 cc vehicles as per 25th meeting of GST council held on 18th January 2018.
3. If the book value of both the vehicles is 500000 in our company books after depreciation, then do i need to pay GST on the margin money which is 130000(630000-500000) or on the sale value of 630000/-.
4. As we are not into car purchase or sale business and a private limited company into manufacturing and selling of jewellery items, the new vehicle which is purchased is for official office use, then can i claim the input tax credit on that vehicle.
5. As this sale of used vehicles is from a register company in GST to a registered company dealing in new and old used car business, then will i be liable to pay GST on the sale of used vehicles. Request you to kindly reply me in details to understand this situation and to further initiate the process, request to reply urgently.
Thanks & Regards
Mohith Guptha
9000738989
1. Do i need to pay any GST for the vehicles sold as exchange for purchase of new vehicle.
2. How much GST need to to be paid if so for the old vehicles? Is there any different rates for above and below 1500 cc vehicles as per 25th meeting of GST council held on 18th January 2018.
3. If the book value of both the vehicles is 500000 in our company books after depreciation, then do i need to pay GST on the margin money which is 130000(630000-500000) or on the sale value of 630000/-.
4. As we are not into car purchase or sale business and a private limited company into manufacturing and selling of jewellery items, the new vehicle which is purchased is for official office use, then can i claim the input tax credit on that vehicle.
5. As this sale of used vehicles is from a register company in GST to a registered company dealing in new and old used car business, then will i be liable to pay GST on the sale of used vehicles. Request you to kindly reply me in details to understand this situation and to further initiate the process, request to reply urgently.
Thanks & Regards
Mohith Guptha
9000738989
22 April 2018
1 Yes GST payable.
2 12% GST for small vehicle and 18% gst for medium and large vehicles.
3 GST payable on margin money of 1,30,000.
4 No ITC available for new vehicle used for official purpose.
5 GST applicable on sale of old vehicle by company.
2 12% GST for small vehicle and 18% gst for medium and large vehicles.
3 GST payable on margin money of 1,30,000.
4 No ITC available for new vehicle used for official purpose.
5 GST applicable on sale of old vehicle by company.
07 May 2018
GST will be charge on Book value as on sale/exchange date or transaction value which ever is higher.
https://www.caclubindia.com/articles/sale-of-capital-goods-in-gst-regime-31284.asp
https://www.caclubindia.com/articles/sale-of-capital-goods-in-gst-regime-31284.asp
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