second hand car resale
Sandesh Shet (student) (202 Points)
04 August 2018
I am selling my polo car.. GST is applicable?
8 Replies
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 04 August 2018
| Originally posted by : Sandesh Shet | ||
 |
I am selling my polo car.. GST is applicable? |  |
Yes
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 04 August 2018
If it's in firm then yes , else no need
Mridul Kwsarwani
(12 Points)
Replied 04 August 2018
If selling car is your business then only yes. Otherwise it is not a supply and no gst will be levied
Shivam RC
(Student)
(23683 Points)
Replied 04 August 2018
GST ON SALE OF SECOND HAND VEHICLE :
Following are some of the cases with respect to sale of Second Hand Cars :
1). Individual sells to individual/un-registered dealer
GST is essentially a tax only on commercial transactions. Hence, only those supplies that are in the course or furtherance of business qualify as supply under GST ( SECTION 7 ). Hence, any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act.
Sale of personal used car by an individual will not attract GST (neither in the hands of buyer nor seller) because it is not covered within the meaning & scope of supply, since the element of 'furtherance of business' test is missing.
2. Individual sells to registered second-hand dealer
The Buyer is also not liable to pay GST on said purchase by virtue of Notification No.10/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017.
3. Sale of Old & used vehicle by registered dealer
The expression 'supply' as per SECTION 7 (1) (a) of CGST Act, 2017 includes sale, lease, disposal. Therefore sale/disposal of old or used vehicle by a registered dealer for a consideration, is in the course or furtherance of business and hence it will qualify to be a supply. So, GST is applicable.
The Rate of GST is 18% and HSN CODE 8703.
For more information, refer Notification No. 8/2018 CT (Rate), dated 25/01/2018.
Following are some of the cases with respect to sale of Second Hand Cars :
1). Individual sells to individual/un-registered dealer
GST is essentially a tax only on commercial transactions. Hence, only those supplies that are in the course or furtherance of business qualify as supply under GST ( SECTION 7 ). Hence, any supplies made by an individual in his personal capacity do not come under the ambit of GST unless they fall within the definition of business as defined in the Act.
Sale of personal used car by an individual will not attract GST (neither in the hands of buyer nor seller) because it is not covered within the meaning & scope of supply, since the element of 'furtherance of business' test is missing.
2. Individual sells to registered second-hand dealer
The Buyer is also not liable to pay GST on said purchase by virtue of Notification No.10/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017.
3. Sale of Old & used vehicle by registered dealer
The expression 'supply' as per SECTION 7 (1) (a) of CGST Act, 2017 includes sale, lease, disposal. Therefore sale/disposal of old or used vehicle by a registered dealer for a consideration, is in the course or furtherance of business and hence it will qualify to be a supply. So, GST is applicable.
The Rate of GST is 18% and HSN CODE 8703.
For more information, refer Notification No. 8/2018 CT (Rate), dated 25/01/2018.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 05 August 2018
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 claim , 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 claim , 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%
Sandesh Shet
(student)
(202 Points)
Replied 06 August 2018
if I'm registered under composition scheme then? I have to pay tax under 1% as I'm a trader
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 06 August 2018
1. GST-18% on Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more.
2. GST-18% on Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm
3. GST-18% on Old and used motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.
4. GST-12% on All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3
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