Sale of old company car

Hi

is gst applicable on sale of old car less than WDA value
Replies (5)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications when selling an old company car, particularly if the sale price is less than its Written Down Value (WDA). Generally, no GST is liable if the sale price is below the WDA, with WDA calculated as per the Income Tax Act. The rules differ slightly if the vehicle was under a VAT regime versus the current GST regime, with GST typically applying to profit margins in the latter case if Input Tax Credit (ITC) was claimed.

No liability to pay GST if sale price of vehicle is less than its written down value
Thanks

No liability to pay GST. WDV to be calculated as per Income Tax Act

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 is claimed , 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%

Else ,.. 12%
GST on Sale of Second hand Motor Vehicle is applicable on the Margin. If the margin is NEGATIVE, then no GST is applicable.

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