TREATMENT IN GST TO SALES OF COMMERCIAL VEHICLE WITH GST.

I TAKEN COMMERCIAL VEHICLE ON OCT 2017 AND I ALSO TAKE GST CREDIT ON IT, BUT I WANT TO SELL THIS VEHICLE, CAN GST ON SALE OF THIS VEHICLE IS APPLICABLE. IF APPLICABLE WHAT IS RATE OF GST.

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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications when selling a commercial vehicle. If you've previously claimed GST credit on the vehicle, GST may still be applicable upon sale. The rate is generally 18% applied to the margin, calculated as the sale price minus the Written Down Value (WDV) as per income tax rules. If there's no profit margin, no GST is charged. Notification No. 8/2018 provides further details on GST rates for second-hand motor vehicles.

Read notification no 8/2018 central tax rate

 

It's 18% on margin value

Margin = sale price less WDV as per income tax

 

If there's no margin then no GST.

Yes you can refer Notification No. 8/2018 - Central Tax ( Rate ), dated 25th January 2018 to know the GST Rates on sale of Second hand Motor Vehicles.

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