Gst on sale of old vehicle

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This query is : Resolved

Gopalakrishnan V (Querist)

14 March 2019 Company sold a vehicle used by it. Depreciation has been claimed on hat vehicle. Kindly clarify the applicability of GST on sale of used vehicle by a Company.

CA Anita Bhadra

CA Anita Bhadra (Expert)

14 March 2019 GST is applicable on sale of old vehicle used by it . .

In Case Depreciation under Income Tax Act Availed: - Margin of supply shall be difference between Sale consideration and Written down Value and tax to be calculated on such Margin, and where the margin of such supply is negative, it shall be ignored.

GST Rate -18%
(i) on Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more.

(ii) on Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm

(iii)on Old and used motor vehicles of engine capacity exceeding 1500 cc,
popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.

GST-12% on All Old and used Vehicles other than those mentioned above (i to iii)

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