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GST on old vehicles

Dinesh Kini Mattar (18 Points)

21 November 2018

our commercial transport vehicle about 7years old is to be sold. what is the GST applicable?

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Mayur Patil (Article) (1276 Points)
Replied 21 November 2018

Yes, GST applicable @ 12% on margin.

Here margin means difference between sale price and WDV
In any other case margin means difference between sales price and purchase price.

If margin comes negative then ignore GST.

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Aditi Ahuja (Financial Advisor) (106 Points)
Replied 21 November 2018

The GST applicable on Used or old vehicle are categorized as following:

1- According to Chapter 8703: There will be 18% rate of GST (CGST+SGST) if your vehicle is

(i). Petrol, LPG or CNG driven with 1200 cc Engine capacity 4000 mm or more length

(ii). Diesel driven with 1500 cc Engine capacity 4000 mm or more length

(iii). Sports Utility Vehicles (SUVs) with engine capacity exceeding 1500 cc

2- According to Chapter 87: There will be 12% rate of GST (CGST+SGST) if your vehicle is othrer than above category

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 21 November 2018

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%