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supply of goods on which itc not availed

abhimanyu (Chartered Accountant) (60 Points)

01 March 2019

Sir i have a doubt regarding supply.
If motor vehicles/furniture is transferred and on which itc has not been availed
And those goods are supplied free of cost
Would it be considered as supply of goods?
would the case be any different if those goods were sold for a consideration?

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6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 March 2019

Yes it's supply as per schedule 1.

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abhimanyu (Chartered Accountant) (60 Points)
Replied 01 March 2019

thank you sir,
sir would there be any difference if the supply was for an consideration...(where itc was not been availed earlier)

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 March 2019

Sorry for Above reply ... In Case of Vehicles: 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% in case Furniture: Any fixed asset purchase in Vat regime (Except Vehicle) GST is to charge at transaction value (sale value) If capital goods purchase in GST period & No ITC being availed the as per schedule1 it will not consider as supply & no GST is applicable In Case vehicle :