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)

29 November 2022 Which GST rate is applicable for resale of Lorry?

Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 November 2022 In case of dealers 18% GST applicable on profit margin.

G Prathiba

G Prathiba (Querist)

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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 November 2022 In case ITC is availed 28% GST applicable on sale value.

G Prathiba

G Prathiba (Querist)

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)

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)

29 November 2022 I agree with the above reply

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