A Regd second hand car dealer in U.P purchases a used car Fortuner for Rs.12 lacs from Delhi.
pls guide on IGST payable under 5 (4) RCM?
IF it would not be interstate, i.e suppose purchase within UP only....then we have notification 10/2017 Central tax rate, which says 9 (4) exempt only if Gst paid on value as per rule 32 (5)?
As per rule 32(5) the value on which GST is to be paid is the value of car as on the date of purchase on the invoice ,reduced by 5% each quarter for number of years used
example if the life of the car is 5 years and it has been used for 2 years
lets assume value to be 15lacs
then value = 1500000-5%for each quarter for two years that is
1500000-40%of 1500000 =900000
value on which gst to be charged is 9lac
5%on each quarter × 8 quarters in 2years=40%
CAclubindia
