GST on Sale of Car purchased before GST

Hi Experts...

Please kindly clarify Whether GST is applicable on sale of car purchased during VAT period in which ITC was not taken.How GST is calculated on this sale consideration?

Thanks in advance...
Replies (4)
Quick Summary
This discussion clarifies GST applicability on car sales, particularly for vehicles purchased before the GST era. If a car bought during the VAT period (where no Input Tax Credit was claimed) is sold under GST, GST is charged on the profit margin (selling price minus purchase price). If the car was purchased and sold within the GST regime, GST is applied to the transaction value if ITC was claimed, or on the profit margin if ITC was not claimed. The GST rate depends on the vehicle's engine capacity and dimensions.

Yes gst is applicable , if recieved any consideration.
Dear kesavraj

As per Notification 8/2018 CT (r)

Vehicle of Vat Regime (VAT not claimed) 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%
What about vehicle purchased during GST regime but ITC not taken and it is sold less than WDV value...
No GST as it is sold on loas

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details