Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

GST on Truck sold.

05 July 2019

Wdv of a truck is rs. 200000/-, Truck is sold for Rs. 350000/-. Margin is 150000/-.

Now GST is payable on Rs. 1.5 lakh Or GST is included in 1.5 lakhs.

Reply
Follow
Share

6 Replies

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 05 July 2019

As you are getting only Rs. 3,50,000/- then GST will be calculate as including in Profit Margin of Rs. 1,50,000/-

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 05 July 2019

if the ITC is being claimed at the time of purchase of Truck , then GST is levy on 3.5 lac else on 1.5lac

Anshuman Basu (account -GST) (1549 Points)
Replied 05 July 2019

if we purchase truck before GST period should we add GST? How much we charged?

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 05 July 2019

Then pay GST on 1.5 lac

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

Anshuman Basu (account -GST) (1549 Points)
Replied 06 July 2019

sir we know transaction value shall be difference between sale price and WDV as appearing in the books of seller in these case Rs 150000/- is Transaction Value. profit margin is also rs 150000/- These is very confusing if We claim ITC or Not claim ITC ? Pl Clear me

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 06 July 2019

Dear Anshuman
As per Schedule I & R/w above said Notification it's being clear that
If the ITC is claimed: GST levy on Transaction Value else on profit value
Where is the confusion ??