Gst on Sale of Second hand Truck

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This query is : Resolved

Quick Summary

A transporter, operating under 100% Reverse Charge Mechanism (RCM) for GST and not currently registered, sold a second-hand truck. The sale price was £10 lacs with a WDV of £4 lacs, and they also have £2 lacs in commission income. The question is whether GST registration is required and if GST needs to be paid on the sale and commission, especially since the sale proceeds are below the £40 lacs threshold for goods. Guidance suggests registration isn't needed if turnover remains below limits, but clarification on GST liability for the sale and commission is sought.

VIPIN GUPTA

VIPIN GUPTA (Querist)

28 August 2022 Our Assessee is a transporter and has not taken GST registration as he is covered under 100% RCM. In the current year he has sold one truck of Rs 10 lacs WDV of which is Rs 4 lacs will he be required to take GST registration and pay GST. He has 2 lacs as commission income. I am of the view that since his sale proceeds are less than 40 lacs he is not required to take registration. Kindly guide whether he has to pay GST on Commission income and on Sale price and WDV