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GSat on sale of assets

540 views 2 replies

Himanshu Gupta

Service

1 Points Posted on 18 August 2025

Iplease suggest the GST compliance on vehicle sales on both conditions :-

1. vehicle wdv is 15 lacs and sold in 23 lacs. 2. vehicle wdv is 30 lacs and sold in 23 lacs.

On both conditions on which value GST should be paid.

Replies (2)

Quick Summary

This discussion clarifies how Goods and Services Tax (GST) applies to the sale of vehicles, particularly when the sale price differs from the written-down value (WDV). Regardless of whether the vehicle's WDV is higher or lower than the sale price, GST is calculated on the actual transaction value, meaning the price it's sold for. The WDV is only relevant for income tax purposes, not for determining the GST liability.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 18 August 2025

In both cases, GST is levied on the transaction value (sale price of Rs.23 lakhs).

LegalDev

1388 Points Posted on 18 August 2025

Under GST, sale of a motor vehicle (capital goods) is treated as supply if ITC was availed at the time of purchase. In both cases, GST will be payable on the actual sale value (transaction value) and not on WDV.

Case 1 (WDV ₹15L, Sale ₹23L): GST on ₹23 lakh.
Case 2 (WDV ₹30L, Sale ₹23L): GST again on ₹23 lakh.

WDV is relevant only for Income Tax/Depreciation, not for GST. GST is always on the sale consideration as per Section 15 of CGST Act, 2017 (as applicable in 2025).