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Sale of used car

Khadija (Student) (123 Points)

17 May 2019

I want to sell my car purchased in March 2011. WDV as on 31-3-19 is 151000/-. Amount recd is 155000/-. Is GST applicable???
I am registered in GST.

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5 Replies

bharat karsyal (63 Points)
Replied 17 May 2019

what is your nature of business?
If sale/purchase of old vehicles, then GST is applicable otherwise no GST is applicable.
(Also ITC on such vehicle is not allowed)

Khadija (Student) (123 Points)
Replied 17 May 2019

We have trading business.

bharat karsyal (63 Points)
Replied 17 May 2019

GST will be applicable @ 12% on the Margin of supply.
Where margin of supply shall be the difference between the consideration received and the wdv on the date of sale.
In your case, 1,55,000-1,51,000=4,000
GST= 4,000*12%
(This is as per Notification no. 8/2018)

Khadija (Student) (123 Points)
Replied 17 May 2019

Car is shown as Asset in Balance Sheet.

durgesh (student) (222 Points)
Replied 18 May 2019

ur value of supply would be margin value...as per 8 / 2018 notification....so it would be 4000 ruppes....now....as per notification 37 / 2017....it would be 65 % of Rate taxable......so eventually 65% of 9%...that is 5.85%........

now is the crux

u have to consider 4000 as inclusive of tax......therefore....if
4000 = (100+5.85+5.85)
4000= (111.7%)
3581=100%

therefore tax would be 3581 ka 5.85%.....that is 209 Rs. each cgst and sgst

but consider 35% exempt

therefore 3581×65%
2327

and there fore tax would be
2327 × 9%
209 cgst and sgst

eventually ur calulation falls like this

taxable value 2327
cgst 209
sgst 209
expempt 1253