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gst on car sale

sanjeev sahota (accountant) (61 Points)

07 March 2019

Partnership firm car sale to a agent dealer but sale value less then purchase value. Is gst applicable or not.

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2 Replies

Mohit Jagnani (Professional - CA firm) (524 Points)
Replied 07 March 2019

Hi sanjeev,

There are specific calculations for second hand goods, and doing dat one can figure out the gst amount.

But it can be said that gst is applicable

For further assistance kindly reach out to us

HAPPY TO HELP!!
.

MOHIT JAGNANI
8820448170

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 March 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%