The Tipper, which was used for construction and construction material supply, has been considered for sale. They had availed of the Input Tax Credit (ITC) on its purchase. It was purchased on 28.03.2023 for Rs.48,00,000/-, considering selling for Rs.38,00,000/-, and the Written Down Value (WDV) in the books was Rs.43,57,000. What is the applicable GST Rate, GST amount, and taxable value of the above transaction? and also, whether any ITC wants to reverse on Unused Period & How to calculate that?
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SALE OF Used Tipper vehicle by Contruction & Material Supplier
Replies (4)
User of tipper vehicle .
As per Section 18(6) of CGST Act, Vehicle value has to be reduced 5% per quarter and accordingly valuation has to be made. Based on the valuation GST liability shall arise.
| Date of purchase | 28-03-2023 |
| Date of Sale | 07-05-2024 |
| No. of months used (Apr23-Apr'24) | 13 |
| ITC availed (28% GST rate) | 13,44,000.00 |
| Eligible ITC | 2,91,200.00 |
| ITC attributable to unused period (a) | 10,52,800.00 |
| Sale value of Tipper | 38,00,000.00 |
| GST rate | 28% |
| GST payable (b) | 10,64,000.00 |
| GST Payable (higher of a or b) | 10,64,000.00 |
thanks for the detailed reply
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