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Clarity of Supply under GST

Yash Thakare (12 Points)

22 October 2021  

Is sale of car used for personal purpose a Supply under GST? as Business includes "any trade, commerce, manufacture, profession, vocation or any other similar activity whether or not it is for a pecuniary benefit" and   "any activity or transaction in the nature of (a) above, whether or not there is volume, frequency, continuity or regularity of such transaction".


 6 Replies

inderjeet saini (227 Points)
Replied 22 October 2021

No!! sale of car used for personal purpose not cover under gst
1 Like

Yash Thakare (12 Points)
Replied 22 October 2021

Thanks for answering, but What is the logic behind that ? As cleartax.in says "From the above definition it can be noted that: Business includes any activity carried out by a person whether or not, there is volume, frequency, continuity or regularity of such transaction. Meaning a single transaction of supply also is considered business Also occasional trade or even one time trade constitutes business"   Isn't it satisfying all the conditions of supply ? 

inderjeet saini (227 Points)
Replied 22 October 2021

Selling of car used for personal purpose is your business???
1 Like

Yash Thakare (12 Points)
Replied 22 October 2021

Again thanks for answering. I get that it is not a business but the definition given makes it seem like a business ( I have marked the words in  bold in the post ). 

Rajendra Prasad (Employee Private) (572 Points)
Replied 23 October 2021

Any individual bought a Car and used for personal and sold it, is not under purview of GST as there is no any furtherance of Business. If a Busniess entity made the above transaction it is Taxable, subject to the provisions of the Act.

CS Abhishek Goyal (M Com FCS LLB M-AIMA ) (10322 Points)
Replied 28 October 2021

Sale of old car does not constitute supply within the meaning of section 7(1) since though it is for a consideration, it does not satisfy criteria of being in the course or furtherance of business. Even if it is disposed off without consideration it would constitute supply under Scheedule I only if it is a business asset and ITC has been availed which is not possible in terms of section 17(5).


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