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GST on Sale of Old Vehicle purchased in 2015

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Lakhbir sauja

60 Points Posted on 12 January 2022

A Registered person is providing services to Companies for pick and drop facility for their employees , charging GST under forward charge and few companies are paying under RCM. Now RP
wants to sale old vehicle, purchased in 2015, whether Gst is applicable on full value or difference of sale value- WDV .

Replies (2)

Quick Summary

A registered person providing employee transport services, charging GST under forward charge and RCM, is seeking clarification on selling an old vehicle purchased in 2015. They want to know if GST applies to the full sale value or the difference between the sale value and the written-down value (WDV). Crucially, since the vehicle was purchased before GST was implemented, no input tax credit was claimed.

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 12 January 2022

Please refer to the below provisions:

As per Section 18(6) of CGST Act,

“In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery determined under section 15, whichever is higher: