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...
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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.
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%