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Used car to New car

21 December 2019

We have purchased a car bef
ore GST regime in our comapny and did't claim any credit on that car...

Now we want to purchase new car in exchange offer with this old car...

Will we have to pay GST on sale of Old car ???

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8 Replies

Shikha Gupta (11 Points)
Replied 21 December 2019

Itc cannot be claimed on purachse of car, except for hiring business and other more exemptions.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 21 December 2019

Will we have to pay GST on sale of Old car ???

- No need.

Shikha Gupta (11 Points)
Replied 21 December 2019

No we do not have to pay on sale of old car as itc had not been claimed

CMA M.Keerthi chandra (C.A FINAL STUDENT AND QUALIFIED C.M.A) (561 Points)
Replied 21 December 2019

Assets forming part of Business when transferred or disposed off by under directions of person carrying on the business so as no longer to form part of those assets even whether or not for consideration is DEEMED SUPPLY OF GOODS.

Please refer Sec 7(1A) of C.G.ST Act read with schedule II point No 4