Auction

Reverse charge mechanism is applicable on notified goods as per section 9(3) of the CGST Act, 2017.
and
purchase of old motor vehicle from such govt dept is one such good.

The rate of GST would be 28% + cess.

Advance ruling can be obtained by making application in prescribed form on stipulated matters as per section 97 to Authority for Advance Ruling with fee of Rs 5000

As proviso to Rule 32 (5) of the Central Goods and Services Tax Rule,2017 which says that in case of sale of repossessed goods from a defaulting borrower, who is not registered, the value of the output will be the difference between (a) actual sale price; or (b) depreciated purchase price, taking a depreciation of 5% per quarter or part thereof, from the date of purchase till disposal. The value of the output will be taken as nil, if (a) is less than (b).

Sir, Thanks for detailed information.

Dear Surain Sir,

 

As far as RCM (Reverse Charge Mechanism) is concerned, such principle is applicable only when u buy some goods from unregistered GST entity. What, if the purchaser by himself is also unregistered, then how will the tax be paid and in what manner ? Please let me know.

 

Thanks for your very useful suggestion.

 

Dear Pankaj ji,
I really appreciate Rule 32 (5) of the Central Goods and Services Tax Rule,2017  which says all about repossessed goods and other things.
The question is still standing what is the actual sale price and the method of determination of such sale price  and in this case who will pay GST ?
Do you mean if SDM or Tehsildaar auction the vehicle below the market value also then also such price will be considered as actual sale price  ?
I am looking for your response.
Warm regards,
Nitin Gupta