GST on Sale of Car purchased before GST

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.