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GST on sale of second hand motor bike

13 September 2022

A motor bike was purchased for ₹ 1,40,000/- by a registered firm.
Depreciated value of the bike in balance sheet as on 31.03.2021 is ₹ 1,15,000/-.

The bike is being sold to an individual for 70,000/-. How is invoicing of this sale to be done? How much % GST to be charged and on what amount?

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7 Replies

CA Aakarsh Jain (CA) (10431 Points)
Replied 13 September 2022

GST will not be charged as sale value is below 1,15,000.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 14 September 2022

As per Section 7 , r/w Schdule 1, Where there is consideration is involved for transfer/supply of Business Asset, GST is livable. Rate of GST will be 28% under heading 8711 & need to raise Tax Invoice as per Section 31.

Note : GST not Profit Because :
1. Notification 8/2018 which applicable on old motor vehicles covers under Chapter Heading 8703, whereas motor .bike cover under 8711.
2. Rule 32(5) does not applicable, as it is applicable where taxpayer is engaged in sale purchase of 2nd hand goods.

For more detail can refer : https://youtu.be/tdTP7trj-5g.

or my channel Saral GST

Reddy Reddy (79 Points)
Replied 05 October 2022

Sale value below 150000 gst will not be charged

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 06 October 2022

@ reddy reddy

why gst is not applicable below 1.5lac ????

Rajendra Prasad (Employee Private) (1867 Points)
Replied 07 October 2022

AS per Sl. No.4 of notification No.08/2018, Central Tax Rate, has to rise Tax Invoice on profit only and also with 12% GST rate. ON above case there is no profit, hence no tax is payable.