A Luxury car was purchased by a Registered Firm in 2014. The Firm has not claimed any input on the said purchase, because it was block credit U/s 17(5).
Now, The Firm want to sell this car. Do The Firm need to charge GST on sale (Though The Firm have not claimed input at the time of purchases)? If yes, at what
rate do I need to charge GST?
In GSTR1 which column we show the Figure:
Sales value Rs.1,14,2306/-
WDV 1st August 2021 Rs.5,38,456/-
Margin Value Rs 6,03,850/-
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Sales old car
Replies (9)
As per the Notification No 8/2018- Central Tax Rate has to pay Tax on the margin. Go through the notification for application Rate of GST as per HSN code.
The GST rate is 18%.
Value to be taken as if sale value is less than WDV then value of supply is 0 therefore no tax. If sale value is more than WDV then value is the difference and rate is 18% as mentioned above.
Correct Zafar
The GST rate is 18%.
Value to be taken as if sale value is less than WDV then value of supply is 0 therefore no tax. If sale value is more than WDV then value is the difference and rate is 18% as mentioned above.
The GST rate is 18%.
Value to be taken as if sale value is less than WDV then value of supply is 0 therefore no tax. If sale value is more than WDV then value is the difference and rate is 18% as mentioned above.
A per Notification 8/2018 CT (r)
Vehicle of Vat Regime Sold in GST Regime :
GST is applicable on Profit Margin (Sale-Puchase )
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 )
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%
In my opinion it does not constitute supply under section 7(1) since sale of old car cannot be said to be in the course or furtherance of business unless the company is in itself engaged in the said business. Since sale is made for a consideration it is outside the purview of Schedule I. If business asset is sold as scrap then also it has to be seen whether it amounts to in the course or furtherance of business.
The definition of business is not the same as it used to be. It is very wide now and covers almost every transaction of economic value.
if Vehicle purchase GST Regime Sold in GST Regime then what is the rule?
Then also gst applicable as explained in previous replies
Dear Anshuman
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)
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)
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