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Vehicle sale gst

09 March 2021

commercial vehicle purchased on 1/9/2017 vehicle gst input is not claimed on that time.
sale consideration date 5/2/2021
sale time we are not collected gst amount from party
in this case gst is liability coming or not that vehicle ???

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6 Replies

prasad Nilugal (3914 Points)
Replied 09 March 2021

If vehicle was used for furtherance. of Business , GST applicable Margin value , difference between sale value and deprecated value on the sale date . ( Depreciation as per I T Act )
please refer notification 8/2018 Central Tax ( Rate) dated 25/1/2018 .
please confirm with others also .

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Divyam Agarwal (Practicing Chartered Accountant) (959 Points)
Replied 09 March 2021

Agreed with Prasad.
GST is applicable only on the amount of difference of sale consideration and depreciated value as per Income Tax Act, and if the said value comes negative, then no GST is applicable.

2 Like

Abhishek Parmar (26 Points)
Replied 09 March 2021

Gst won't be applicable at all.since we had not taken itc at the time of purchase.section 7 r.w. schedule 1 supply without consideration.

2 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14811 Points)
Replied 09 March 2021

In Notification 8/2018 (C.T) rate dated 25/1/2018 , It is clearly mentioned that , This Notification shall not apply , If the supplier has availed input Tax credit , However In query Mr Kotain has clearly mentioned that They have not availed Input Tax credit , on 1/9/2017 at time of purchase of Vehicle .

1 Like

Nishu Kotian (332 Points)
Replied 09 March 2021

Finally gst won't be applicable is it right ......

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prasad Nilugal ( GST Practitioner & Accounts ) (14811 Points)
Replied 09 March 2021

As per my opinion GST is applicable on margin as per Notification above and information given in query , If still you have any doubt , confirm with more people also .