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Sale of Vehicle

24 September 2017

In the case of partnership firm, motor vehicle is registered in the name of partner, used in business and shown in balance sheet, if it is sold then whether the firm is required to Pay GST on such sale?
if yes what is the rate of tax?
what is HSN?

What if it is a proprietorship concern?

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2 Replies

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 24 September 2017

In my view GST not applicable to "Sale of Old Car"

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 24 September 2017

The tax is on supply of goods. you are selling the car whether old or new which by all means is a supply. Therefore, the sale of car is subject to charge of GST. I have not seen any provision of law suggesting otherwise. The rate of tax GST + CESS will depend on the segment of the car. The HSN code is 8703.

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