GST ON SALE OF OLD VEHICLE??

I'm starting business of purchasing and selling of old vehicle.

please tell me gst applicable on it??
Replies (6)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications when buying and selling used vehicles. It explains that GST is typically applied on the profit margin (selling price minus purchase price) under a specific scheme. Importantly, input tax credit (ITC) is not available for the purchase of these vehicles when opting for the margin scheme.

Where a person who is dealing in buying and selling of used goods, or goods subject to minor processing but which does not change its nature,the taxable value shall be computed as follows:

As per Rule 32(5) of CGST Act
ITC is not available



a. GST on Margin (Profit) = Selling Price – Purchase Price

b. If Selling Price is less than the Purchase Price, ignore the negative value. (GST is not applicable)
In addition to Pankaj reply ,I would like to State that , Input Tax credit on purchase vehicle should be taken earlier , this is one condition .
Please correct my above reply Input Tax credit on purchase vehicle should not be taken earlier.
Thank both of you sir

dear parsad ji

itc is not available when if you have opted the margin scheme (gst on profit)

No , Pankaj , I am telling him when he purchase vehicle to sell , so on that vehicle no ITC has been availed earlier . this is one of the condition .

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