Gst on sale of old vehicles

Any gst on sales of old vehicles or is exempted
Replies (6)
Quick Summary
Yes, GST is applicable on the sale of second-hand motor vehicles; it is not exempt. The calculation method depends on whether the vehicle was purchased and sold under the GST regime and if Input Tax Credit (ITC) was claimed. Generally, GST is applied to the profit margin (sale price minus purchase price) if ITC is not claimed or if the vehicle was under a VAT regime. If ITC was claimed under the GST regime, GST is calculated on the transaction value. Rates of 12% or 18% apply based on the vehicle's engine capacity and dimensions.

Yes Sir GST is applicable on Sale of Second Hand Motor Vehicles. It is a SUPPLY. You can refer Notification No. 8/2018 - Central Tax ( Rate ), dated 25th January 2018 for the GST Rates which are applicable on sale of second hand cars.
It's not exempt. GST is applicable on sales of old vehicles
How to calculate gst
As per sale amount
On Gross
As per Notification 8/2018 CT (r)

Vehicle of Vat Regime 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%

Else ,.. 12%

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