Urgent exchange of used car with new - gst applicability


(Querist)
14 August 2019
IF I BUY A NEW CAR IN EXCHANGE OF OLD CAR IN THE F.Y.2017-18 POST GST REGIME. AND I AM MAKING CAPITAL GAIN ON THE OLD CAR IN THE BOOKS. DO I HAVE TO PAY GST ON MARGIN EARNED?
OR THIS APPLIES ONLY TO DEALERS OF SECOND HAND CARS?


CA PARTH SHAH (Expert)
16 August 2019
in your case since you are not into business of selling old /second hand goods, Rule 32(5) of CGST Rules, 2017 shall not be applicable to you. As per Notification 08/2018 – Central Tax, you have to pay GST on Difference between Sales Consideration and the depreciated Value of old car provided that you have not taken credit on the car in FY 17-18.

CA Ruchita Jain (Querist)
17 August 2019
Thank you so much CA Parth Shah


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