Hi
is gst applicable on sale of old car less than WDA value
5 Replies
CA Jitender Yadav
(Sr. Finance Executive)
(261 Points)
Replied 07 July 2021
No liability to pay GST if sale price of vehicle is less than its written down value
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 07 July 2021
No liability to pay GST. WDV to be calculated as per Income Tax Act
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 July 2021
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 is claimed , 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%
Vehicle of Vat Regime Sold in GST Regime :
GST is applicable on Profit Margin (Sale-Puchase )
Vehicle Purchased & Sold in GST Regime :
& If ITC is claimed , 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%
Shivam RC
(Student)
(23683 Points)
Replied 08 July 2021
GST on Sale of Second hand Motor Vehicle is applicable on the Margin. If the margin is NEGATIVE, then no GST is applicable.
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