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Gst on sale of old/used two wheeler

Neeraj (accountant) (46 Points)

21 December 2018  

if we sale a old/used two wheeler what should be GST Rate on sale of it.

1. Sale value lesser than Depreciated amount

2. Sale value more than depreciated amount

 2 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 21 December 2018

GST rate on sale of bikes below 350 cc engine is 28% above that it is 31%

However Whether GST Is applicable on sale of Used bike will depend on who is selling the bike to whom . there are 3 possibilities


  1. Individual Person selling used bike to another Individual Persons, in this case since the person does not sell bikes in course or furtherance of business it will not consitute supply and since point of taxation under GST is supply, no GST will be applicable.

  2. Individual person selling used bike to Unregistered Person, now since the buyer is unregistered as his turnover would be less than the prescribed limit . No GST is applicable

  3. Individual selling to a GST registered Dealer, GST will be payable under Reverse Charge Mechanism.

Replied 21 December 2018

I think individual selling to registered dealer still Gst not applicable. The reverse charge notification 04/2017 as amended talk of supplier as Govt, or local authority

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