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GST on Asset

13 September 2019

I purchased a car in 2015,and I availed ITC on vat payment,now in 2019 I sold that asset for a profit margin of RS.2,50,000, ... whether GST is applicable on the profit on sale of car, will your answer differ if asset purchased is a machinery

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 13 September 2019

If You are take that ITC then Yes GST applicable for the sale of Car.

Piali Roy Chowdhury (605 Points)
Replied 13 September 2019

Yes GST applicable in this transaction

Prasad Royals (86 Points)
Replied 13 September 2019

But I purchased it in vat period not in GST regime

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 13 September 2019

Yes... But, Sale proceeds in GST regime and GST applicable on sale value.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 14 September 2019

As per Notification 8/2018 CT (r)
Vehicle of Vat Regime Sold in GST Regime : GST is applicable on Profit Margin (Sale-Puchase )

Vehicle Purchased & Sold in GST Regime : If ITC claim , then GST is on transaction Value If ITC is not claim , then GST is on Profit Margin (Sale - Purchase)

GST Rate 12 % & 18% is applicable as per CC engine of vehicle mentioned in Notification. More then 1500 CC , leanth exceeding 4000 MM, GST is 18% Else ,.. 12%

Note: Government also Exempted the Cess applicable on sale of Used vehicle through Notification No. 1/2018 Compensation Cess Rateunder entry no.42A

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