Gst on used car

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we are the proprietorship co. we have sold used car which we have purchased before 2-3 years and we have charged depreciation on it. so we have to pay GST on it? if yes wat is the rate and on which value we have to charge?

 

Replies (2)

If you are a company dealing in cars then yes you have to charge GST or else no.

If you are registered under GST.

Case 1: If input tax credit has not been availed on purchase of motor vehicle:

Tax to be discharge on margin (i.e. Sale price – depreciated value as on date of sale), if negative no GST to be paid.

Notification no. 8/2018-Central Tax (Rate) dated 25th January 2018

GST rate on sale of old and used motor vehicles
 

Category

Rate

Old and used, petrol engine >=1200cc and length >=4000mm

18%

Old and used, diesel engine >=1500cc and length >=4000mm

18%

SUV (Length >4000mm, Ground clearance >170mm, engine >1500cc)

18%

Other than above

12%

 

Conditions:

  1. Input tax credit should not have been availed on purchase of such vehicle.
  2. Sale of such vehicles on or after 25/1/2018. Notification no. 1/2018-Compensation Cess (Rate) dated 25th January 2018.

Notification no. 1/2018-Compensation Cess (Rate) dated 25th January 2018

No compensation cess to be paid on sale of old and used motor vehicles.

Case 2: In case of sale of new motor vehicle or in case of old vehicle where input tax credit has been availed on purchase of such motor vehicle:

GST to be discharged on transaction value (i.e. sale price) at the rate of 28%.

Compensation cess to be discharged based on notification no. 1/2017-Compensation Cess (Rate) dated 28th June 2017 as amended by notification no. 5/2017 Compensation Cess (Rate) dated 11th September 2017.

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