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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GST on Asset
Replies (6)
If You are take that ITC then Yes GST applicable for the sale of Car.
Yes GST applicable in this transaction
But I purchased it in vat period not in GST regime
Yes... But, Sale proceeds in GST regime and GST applicable on sale value.
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
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
GST is applicable in this transaction. It constitutes a Supply.
Refer Notification No. 8/2018 - CT ( RATE ).
Refer Notification No. 8/2018 - CT ( RATE ).
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