Does Sale of Fixed Asset - Motor Car, attracts GST ?

This query is : Open 
Quick Summary
This discussion clarifies whether Goods and Services Tax (GST) applies when a business sells a motor car for more than its book value, especially if the business isn't involved in car sales. The consensus is that GST is generally applicable if the car was used for business purposes. Importantly, the tax is typically charged on the profit margin (sale price minus purchase price), not the entire sale price, particularly if input GST was claimed.

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(Querist)
22 January 2021 Dear Sir / Madam,

There is a fixed asset - motor car which is to be sold at a price more than the book value which will lead to profit on sale of car. Also the Assessee, is not in the business of buying & selling of Car.
Whether GST is applicable at the time of sale ?
If yes, then at what value - sale price or profit ?
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Gokul Sharma

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Gokul Sharma (Expert)
22 January 2021 IF YOU HAVE NOT TAKEN INPUT OF GST THEN GST SHOULD BE PAID ON MARGIN /PROFIT.
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Lekhraj sood

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Lekhraj sood (Expert)
22 January 2021 It the motor car was used for the business then GST is payable.
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CA Rashmi Gandhi

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CA Rashmi Gandhi (Expert)
22 January 2021 GST is to charged on sale of Used Car or Motor Vehicles. Tax is to be paid on margin of supply i.e. Sale Price - Purchase Price.
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