gst on second hand car

254 views 10 replies
please let me know the law in gst on sales of used car by individual
Replies (10)
If Individual (without GSTIN holder) then GST not applicable in this sale by Individual...
As per Notification 37/2017
Vehicle purchase before GST:
GST will be charge on the 65% of transaction value (sale)

As per Notification 8/2018
Vehicle purchase in GST regime:
if ITC has been claim on vehicle , .. GST will charge 28% + cess on sale value
If ITC was not claim ,..GST will be deposit on Profit Margin (Sale - Purchase)
Definition of ‘supply’ Under section 2(92) read with section 3 ‘supply’ includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Schedule I specified the supply.In your case supply is made by an individual after he has used his car. Since the sale of the vehicle is a one time event and in anyway is not connected with furtherance of such individuals business, it is not a supply and therefore there is no question of applicability of gst as it’s not a supply..
Mr Felix Thomas ,.. pls refer to notification 37/2017 CT (r), & Notification 8/2018 CT(r), ... its on sale of old vehicles
Anything in GST or Under GST...

If the sales from Individual (who is not registered under GST) then GST Not atracted / Affected / no more questions about GST....
As per schedule II , (Activities treated as supply)
4. Transfer of business assets
[a] where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person;
I'm a individual, I sale my car. I don't have any GST Registration. At the time of sale my car "How I charge GST on sale of Car?"... GST not applicable as per my above reply... View is different if registered or unregistered or individual...!
sales of used car by individual. No gst applicable.
I agree with Raja sir view.
Yes,.. offcoures, there is no GST on sale of car by individual (URD)
notification mentioned above by me is not applicable on Individual (URD)
thank you all


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register