24 August 2021
A Luxury car was purchased by a Registered Firm in 2014. The Firm has not claimed any input on the said purchase, because it was block credit U/s 17(5). Now, The Firm want to sell this car. Do The Firm need to charge GST on sale (Though The Firm have not claimed input at the time of purchases)? If yes, at what rate do I need to charge GST? In GSTR1 which column we show the Figure: Sales value Rs.1,14,2306/- WDV 1st August 2021 Rs.5,38,456/- Margin Value Rs 6,03,850/-
24 August 2021
The GST rate is 18%. Value to be taken as if sale value is less than WDV then value of supply is 0 therefore no tax. If sale value is more than WDV then value is the difference and rate is 18% as mentioned above.
25 August 2021
As per my opinion, GST shall be charged on the sale value to the purchaser, GST rate varies according to the HSN applicable to that car.
CAclubindia
