what will be the assesable value for gst for sale of used motor car
8 Replies
Durgesh Mourya
(219 Points)
Replied 08 September 2018
In my General Knowledge
, it is Previous Taxes - GST. GST Calculated based on Vehicle Type and Value.
GST Rate may be as on New Vehicle Same is on Old. I didn't checked books now, but as per my mind and I remember special speech of FINANCE MINISTER AND SECRETARY ON THIS. SO SAME I AM HERE SAYING TO YOU.
STILL I ADVISE EVERY ONE TO CONSULT PERSONAL CA AND ACCOUNTANT. THEY INDIVIDUALLY DO VALUATION.
, it is Previous Taxes - GST. GST Calculated based on Vehicle Type and Value.
GST Rate may be as on New Vehicle Same is on Old. I didn't checked books now, but as per my mind and I remember special speech of FINANCE MINISTER AND SECRETARY ON THIS. SO SAME I AM HERE SAYING TO YOU.
STILL I ADVISE EVERY ONE TO CONSULT PERSONAL CA AND ACCOUNTANT. THEY INDIVIDUALLY DO VALUATION.
Rohit Tibrewal
(Student & Senior Accountant)
(3193 Points)
Replied 08 September 2018
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;
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;
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 September 2018
As per Notification 8/2018 CT (r)
Vehicle of Vat Regime Sold in GST Regime :
GST is applicable on Profit Margin (Sale-Puchase )
Vehicle Purchased & Sold in GST Regime :
If ITC claim , then GST is on transaction Value
If ITC is not claim , then GST is on Profit Margin (Sale - Purchase)
GST Rate 12 % & 18% is applicable as per CC engine of vehicle mentioned in Notification.
More then 1500 CC , leanth exceeding 4000 MM, GST is 18%
Else ,.. 12%
Vehicle of Vat Regime Sold in GST Regime :
GST is applicable on Profit Margin (Sale-Puchase )
Vehicle Purchased & Sold in GST Regime :
If ITC claim , then GST is on transaction Value
If ITC is not claim , then GST is on Profit Margin (Sale - Purchase)
GST Rate 12 % & 18% is applicable as per CC engine of vehicle mentioned in Notification.
More then 1500 CC , leanth exceeding 4000 MM, GST is 18%
Else ,.. 12%
Rohit Tibrewal
(Student & Senior Accountant)
(3193 Points)
Replied 08 September 2018
Pankaj Ji, 8/2018 related to used/old vehicles?
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 September 2018
Yes ,.. Rohit ji , query is also in regard to sale of used vehicle.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 September 2018
This notification shall not apply, if the supplier of such goods has availed input tax credit
as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT
as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any
other taxes paid, on such goods.
Means if ITC is claim the accessible value will be the Transaction value & the GST will be applicable on it when sold
And
As per schedule I
Permanent transfer or disposal of business assets where input tax credit has been availed on such assets.
Concl. Its transaction value on which GST is applicable if ITC being claim on same
Rohit Tibrewal
(Student & Senior Accountant)
(3193 Points)
Replied 08 September 2018
Ops sorry i have explained the same and Wrongly asking the same again 😑
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