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/-
9 Replies
Rajendra Prasad
(Employee Private)
(1867 Points)
Replied 24 August 2021
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.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 24 August 2021
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.
Chain to Help
(35 Points)
Replied 24 August 2021
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.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 25 August 2021
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%
CS Advocate Abhishek Goyal
(M Com FCS LLB M-AIMA )
(13706 Points)
Replied 26 August 2021
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.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 26 August 2021
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.
Anshuman Basu
(account -GST)
(1556 Points)
Replied 26 August 2021
if Vehicle purchase GST Regime Sold in GST Regime then what is the rule?
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 26 August 2021
Then also gst applicable as explained in previous replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 01 September 2021
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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