GST on sale of second hand motor bike

A motor bike was purchased for ₹ 1,40,000/- by a registered firm.
Depreciated value of the bike in balance sheet as on 31.03.2021 is ₹ 1,15,000/-.

The bike is being sold to an individual for 70,000/-. How is invoicing of this sale to be done? How much % GST to be charged and on what amount?
Replies (7)
Quick Summary
The discussion examines GST on the sale of a second-hand motorbike by a registered firm. Views differ on whether GST applies on the transaction value or under the margin scheme. Key issues include applicability of Notification 8/2018, HSN classification, depreciation, and taxability when sold below written down value.

GST will not be charged as sale value is below 1,15,000.
As per Section 7 , r/w Schdule 1, Where there is consideration is involved for transfer/supply of Business Asset, GST is livable. Rate of GST will be 28% under heading 8711 & need to raise Tax Invoice as per Section 31.

Note : GST not Profit Because :
1. Notification 8/2018 which applicable on old motor vehicles covers under Chapter Heading 8703, whereas motor .bike cover under 8711.
2. Rule 32(5) does not applicable, as it is applicable where taxpayer is engaged in sale purchase of 2nd hand goods.

For more detail can refer : https://youtu.be/tdTP7trj-5g.

or my channel Saral GST
Sale value below 150000 gst will not be charged

@ reddy reddy

why gst is not applicable below 1.5lac ????

AS per Sl. No.4 of notification No.08/2018, Central Tax Rate, has to rise Tax Invoice on profit only and also with 12%  GST rate. ON above case there is no profit, hence no tax is payable. 

@ RAJENDRA PRASAD

THE BIKE DO NOT COVER UNDER THE HSN MENTION IN NOTIFICATION, HENCE THE SAID NOTIFICATION DOES NOT APPLICABLE.

AND AS PER SECTION 7 READ WITH SCHDULE 1 ITS AN SUPPLY AND GST WILL BE APPLICABLE ON TRANSACTION VALUE.

Dear  sir,

As per Sl No.4 of Notification.08/2018-CTR any item Starting with 87 are covering. Please go through.

 

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