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GST impact on sale of 2nd hand car
what is the rate of GST on sale of 2nd hand car and on which amount it is levied? What is impact of GST on this used car sold?
Replies (9)
no separate rate for old car
on which amount gst is levied. is on total sales price or on margin amount.
total sale price
Rule 32(5) of CGST Rules,2017 is the one which delas with the used cars related procedure. According to this rule you can choose to pay tax on Margin that you earned by buying and selling of the vehicle. In case there is a loss, you need not pay any tax for that particular vehicle.
The rate of tax is 28% basic+ Cess @ 1%/3%/15% as per the length, CC and Fuel type of the vehicle.
This scheme is called margin scheme.
Thanks
is this rule is applicable on sale of 2nd hand tractor, lorries and bus?
I am not sure about this and i will update you if i come to know the confirmed news.
Rule 32(5) quoted above is only applicable if supply is provided by a person dealing in buying and selling of second hand goods.
a dealer may register himself as margin scheme dealer. he can pay tax for his margin amount only.
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