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Gst on used car

Neha Jain (Chartered Accountant) (1085 Points)

16 August 2017

if registered person (company) under GST act sell used car (old car) to unregistered than treatment by registered person in its books under GST act ???

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 16 August 2017

GST is charged at the same rate it is charged on new cars, but on the dealer’s margins only, ranging from 28 per cent for a small car up to 43 per cent for an SUV.

RD will issue tax invoice for the margin amount with applicable GST to URD.

Neha Jain (Chartered Accountant) (1085 Points)
Replied 16 August 2017

here company's business is not of cars.... company just selling its used car

Neha Jain (Chartered Accountant) (1085 Points)
Replied 16 August 2017

what do the meaning of dealers margin here

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 16 August 2017

Dealers margin is brokerage the used car dealers charge.

But in case the RD is not in the business of selling car, ...... it will not charge GST over the sell of its asset. (Not in line with furtherance of business !)