GST applicability for resale of vehicle

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This discussion clarifies the Goods and Services Tax (GST) applicability on the resale of vehicles, particularly lorries. For dealers, GST is typically charged at 18% on the profit margin. If the seller is not a dealer and has claimed Input Tax Credit (ITC), GST at 28% applies to the sale value. If ITC was not claimed and the vehicle was purchased before GST implementation, the GST rate is generally 18% on the profit margin, calculated as the sale price minus the Written Down Value (WDV) as per income tax rules.

G Prathiba

G Prathiba (Querist)
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29 November 2022 Which GST rate is applicable for resale of Lorry?

Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2022 In case of dealers 18% GST applicable on profit margin.

G Prathiba

G Prathiba (Querist)
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29 November 2022 Other than a dealer 'what is the GST Rate" for sale of used lorry?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2022 In case ITC is availed 28% GST applicable on sale value.

G Prathiba

G Prathiba (Querist)
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29 November 2022 If it is purchased before GST applies? no ITC claimed.
Then, What is rate of GST?

Thanks in advance.

Manish

Manish (Expert)
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29 November 2022 18% on margin amount (sale price less WDV as per income tax).

https://cbic-gst.gov.in/pdf/central-tax-rate/notfctn-08-2018-cgst-rate-english.pdf

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 November 2022 I agree with the above reply

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