SALE OF OLD CAR

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This query is : Resolved

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications when selling an old car. It addresses scenarios where the car was purchased before or after GST implementation, and whether input tax credit (ITC) was availed. The key takeaway is that GST may apply to the sale value exceeding the Written Down Value (WDV), with specific rates potentially varying based on car type and central tax notifications.

satish kumar Chauhan

satish kumar Chauhan (Querist)

04 May 2020 Dear sir

Query as under

1. Car purchased prior to GST & No Vat credit availed WDV is 125000/-. Any tax liability will arise on sale in case of regular taxable person and composition taxable person?
2Car purchased in GST regime & No itc availed WDV is 125000/-. Any tax liability will arise on sale in case of regular taxable person and composition taxable person?

Kindly clarify with some calculation.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 May 2020 In both the cases 18% GST applicable on sale value in excess of WDV value. No GST applicable in case of sale less than WFV.

PAWAN KUMAR

PAWAN KUMAR (Expert)

05 May 2020 Gst will be charged but gst is as per car variant petrol, diesel etc. And length in mm.
Pl, refer not. 08/2018 central tax rate prescribed for gst concessional rate.

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