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GST on sale of used motor vehicles. (business assets)

30 September 2018

Can someone provide detailed information on applicability of GST on sale of used motor vehicles by an entity registered under the GST law.

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6 Replies

rajni aggarwal (student) (137 Points)
Replied 30 September 2018

if you have taken itc at the time of purchased of motor vehicles than you have to pay output tax on sale of used car if not availed itc at the time of purchased then no question of output liability

Leader Electricals Pvt Ltd (13 Points)
Replied 30 September 2018

thank you for the information

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 30 September 2018

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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