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Gst on sale of truck

kaushal laturiya (article ) (263 Points)

18 November 2020

I am a dealer in krushi kendra , have gstn under regular scheme ,I have truck whose book value as on 01.04.2020 is rs 450000 now I am selling that truck to another person who is also registered under gst and having regular scheme of gstn. I am selling that truck for rs. 400000. what is its impact in gst and whether I issues bill of supply or tax invoice while selling truck. kindly reply

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6 Replies

Shivam RC (Student) (23683 Points)
Replied 18 November 2020

As per Notification No. 8/2018 - Central Tax ( Rate ), dated 25th January 2018, Where a person has claimed Depreciation on Motor Vehicle under the Income Tax Act 1961, then GST shall be levied on the MARGIN portion. Margin = Sale Consideration - WDV of the Asset. However if the Margin is NEGATIVE, then no GST shall be applicable.

Accordingly your ,

WDV = Rs. 4,50,000
Sale Consideration = Rs. 4,00,000
Margin = Loss -( 50,000 )

Hence no GST shall be applicable on Sale of Truck. You can issue a Bill of Supply for this Supply Transaction...

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kaushal laturiya (article ) (263 Points)
Replied 18 November 2020

If I sold that truck for rs. 500000, then in that case I have to issue tax invoices of rs. 500000 including gst ,am I right

Shivam RC (Student) (23683 Points)
Replied 18 November 2020

Yes Sir you are right...👍👍👍

kaushal laturiya (article ) (263 Points)
Replied 19 November 2020

Thanks a lot sir

Shivam RC (Student) (23683 Points)
Replied 19 November 2020

Your most Welcome...

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kaushal laturiya (article ) (263 Points)
Replied 19 November 2020

If I sell truck amount rs. 500000, then margin of rs. 50000, in that case tax invoice I have to raised on buyer , then bill is rs. 500000/118*18 or rs. 50000/118*18?
and second question is whether buyer can claim itc