Are we required to pay Gst on the vehicle sold.
As we are not getting credit on purchase of motor vehicle
Please advise
Thanks in advance
2 Replies
Nihit Somani
(109 Points)
Replied 14 November 2018
tell me about your business, are you engaged in buying and selling of motor vehicle or what
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 15 November 2018
Offcourse if you have not avail credit must not in business of vehicles sale & purchase
Hence
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%
Hence
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%
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