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GST on Vehicle sold

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R Gopalakrishna Pillai

finance consultant

50 Points Posted on 02 September 2021

My friend is engaged in vehicle body building and interior works. He has purchased a van from the showroom and modified the vehicle as per the customer's request with proper interior & exterior work including refrigeration etc(vending van).

1. Now my question is whether he can avail input on the purchase of the van.

2. What is the rate of GST applicable on the sale of Modified Van.

Thanks and regards,

Gopalkrishna

Replies (2)

Quick Summary

This discussion clarifies GST rules for businesses involved in vehicle modification and sales. It addresses whether input tax credit (ITC) can be claimed on the purchase of a van intended for modification. Additionally, it outlines the applicable GST rate on the sale of such modified vehicles, including considerations for second-hand vehicles.

Deepak Mundhra

26 Points Posted on 02 September 2021

Assessee is involved in purchasing and selling of Motor vehicles so as per section 17(5) of cgst act he will be liable to take ITC of the motor vehicle and Gst rate applicable will be 28% and also Compensation Cess will be applicable to the assessee as per vehicle engine capacity