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Sale of Car under Business Entity

This query is : Resolved 
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(Querist)
22 January 2025 Car Purchased in 2018 for INR 5 Lacs under Business Entity.
As on 31-Dec-24 Book Value of Car after depreciation as per company law is Rs 2 Lacs
on 31-Dec-24 the same car is sold for 2.10 Lacs.
Hence as per New GST rules GST is applicable on sale of old car so please suggest on which amount GST is applicable?
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Dhirajlal Rambhia online

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Dhirajlal Rambhia online (Expert)
22 January 2025 GST is applicable only on the margin, which is defined as:

Margin=Selling Price−Depreciated Purchase Price

Here, the depreciated purchase price is determined based on the cost price adjusted for depreciation as per the Income Tax Act.
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