Sale of Old Motor Lorry

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This query is : Resolved

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A business purchased a new lorry in 2018 and claimed GST. They now wish to sell the old lorry at a profit, including GST on the sale price. They are seeking advice on whether they need to reverse the previously claimed GST and if any exemptions apply to the sale of old lorries, particularly regarding a potential 2.5% quarterly exemption. The initial advice suggests GST is payable, and the user is now asking for clarification on how to calculate the ITC reversal as per the specified formula.

Rakesh Sharma

Rakesh Sharma (Querist)
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14 November 2021 Respected Experts,

We have purchased new lorry for Rs. 26.88 Lacs for transporting goods in Nov-2018 and taken & utilsed GST around 5.88 Lacs.

Now, we want to sale this lorry as per condition for Rs. 7.50 Lacs + 2.10 Lacs GST. Can we do this or we have to reversed whole claimed GST?

Also, is there any exemption for sale of old Lorry? Is 2.5% exemption per quarter is available for this, if no, for there we can use 2.5% per quarter exemption.

Kindly advise.

Rakesh Sharma