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GST kn second hand cars

31 December 2017

Is there any GST liability on sale of second hand Motor vehicles used in the business where No input benefits of vat/GST was taken on the purchase of Motor vehicles .

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3 Replies

Munish Bansal (8 Points)
Replied 31 December 2017

may be no liability on sale , it's on end of purchaser .

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sudip sharma (article) (734 Points)
Replied 31 December 2017

when any person transfer any business asset without consideration and on which is not claim ITC then it is not a supply however when a person takes consideration then it in any case it is a supply and he will be liable to pay GST on the on sales consideration

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Baljeet Singh (CA, B.Com (H)) (954 Points)
Replied 31 December 2017

Definition of ‘supply’ Under section 2(92) read with section 3 ‘supply’ includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business.

Sale of second hand car, if not done in course or for furtherence of business, shall not be a supply. hence, it will not be taxed.