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GST on sale of used car

Others 292 views 1 replies

WDV of car is Rs. 12L. It is sold for Rs. 14L. GST will be charged on profit margin at the rate of 18% i.e. CGST Rs.18000 and SGST Rs.18000. The taxpayer is not a used car dealer, but is registered under GST. The buyer too is registered under GST. So the value of the B2B invoice will be Rs.200000+CGST 18000 + SGST 18000 only, and not of the entire consideration of Rs.14L received?

Thank you

Replies (1)
As per sec 17 Blocked credit, In case of purchase of car upto 13 seater,the Gst paid at time of purchase would become ineligible.Than,why I has to pay Gst at time of sale of used car.As the Itc not been taken?


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