I purchased a car in 2015,and I availed ITC on vat payment,now in 2019 I sold that asset for a profit margin of RS.2,50,000, ... whether GST is applicable on the profit on sale of car, will your answer differ if asset purchased is a machinery
6 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 September 2019
If You are take that ITC then Yes GST applicable for the sale of Car.
Prasad Royals
(86 Points)
Replied 13 September 2019
But I purchased it in vat period not in GST regime
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 13 September 2019
Yes... But, Sale proceeds in GST regime and GST applicable on sale value.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 14 September 2019
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%
Note: Government also Exempted the Cess applicable on sale of Used vehicle through Notification No. 1/2018 Compensation Cess Rateunder entry no.42A
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%
Note: Government also Exempted the Cess applicable on sale of Used vehicle through Notification No. 1/2018 Compensation Cess Rateunder entry no.42A
Shivam RC
(Student)
(23683 Points)
Replied 14 September 2019
GST is applicable in this transaction. It constitutes a Supply.
Refer Notification No. 8/2018 - CT ( RATE ).
Refer Notification No. 8/2018 - CT ( RATE ).
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