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sale of car

Goods and Services Tax - Started By: - DK AGGARWAL - Dated:- 24-11-2017 Last Replied Date:- 7-12-2017 - Sirwe want to sell the old car purchased before July 2107, registered in the name of Firm to another firm duly registered under GST.Please inform if GST is applicable on sale of old car and if so whether GST input is available to the new buyer.Please inform the rate of GST if applicableRegardsD K Aggarwal - Reply By ANITA BHADRA - The Reply = Dear Sir Yes , GST is applicable .. As per schedule .....

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sue in this forum so many times. in this case is supply in furtherance of business. Hence GST applicable. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Friends, I have different views that the sale of used car is not taxable which is area prone to litigation. Firstly, Govt has come out with Notification No. 37/2017 CGST (Condition No 2) and Cess Notification No. 07/2017 thus providing the Value on which GST is to be paid for sale of used car purchased prior to 01.07.2017. GST is to be levied .....

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......................in the course of furtherance of business. Reference should be made to definition of Business as placed in Sec 2(17) of CGST Act. In the present case, the company business is not to sell the Cars and it has been held in catera of judgments that if the business is not done with an intention to sell cars, then the activity can't be classified as Business activity. In order to be supply, above essentials is must or else GST is not applicable. In short, depends upon the supp .....

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and sells off after 2 years. He is eligible to take ITC CGST Act. If he sells off Motor Vehicle, he has to pay. He will not stand to loose as he has availed ITC at the time of purchase and cost for his is less in comparison to Person A. Law makers should have taken care while drafting the law that Tax Liability should not have been in place for for those who are not eligible for ITC and who are eligible for ITC. - Reply By Ganeshan Kalyani - The Reply = Sri Sanjay Sir, I totally agree with your .....

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e selling price of the second hand car (to the third person).RegardsS.Ramaswamy - Reply By CS SANJAY MALHOTRA - The Reply = Sh. Ramaswamy ji, It's not clarification but Notification No CGST 10/2017 dated 28.06.17 which is applicable to Dealer of Second Hand goods operating under Margin Scheme. - Reply By KASTURI SETHI - The Reply = and Querist or his company is not a dealer of second hand goods. - Reply By Ramaswamy S - The Reply = Thank you Mr Sanjay. I stand corrected. Its notification 10/ .....

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By ANITA BHADRA - The Reply = Interesting and informative discussions - Reply By Ganeshan Kalyani - The Reply = Yes, indeed. - Reply By CS SANJAY MALHOTRA - The Reply = Sh Ramaswamy ji, Firstly GST Act provides tax on supply of business asset and not asset as both have varied meaning. Secondly if tax is charged on same transaction twice, it s double taxation whatever rate may be. Not to forget that this concessional rate is for 3 years and afterwards full 28% + cess. Can we say that it s double .....

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Really it is peerless. Your come back in this forum has infused life in it. No. of questions per day has increased appreciably. I am relishing your replies. Thanks. - Reply By balasundaram t - The Reply = I agree with CA Sanjai Sir - Reply By Ramaswamy S - The Reply = I would like to refer to rule 32(5) of the CGST Rules which is akin to the case here. 32(5) - where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e., used goods as such or after mino .....

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hence no concern for litigation for same. The Notification is absolute clear in such regard. - Reply By RAJESH MANGAL AGRAWAL - The Reply = Thanks to all for a wonderful discussion. Sirs all the discussion is going on because of Restriction on availment of Input Tax Credit on Motor vehicles as per Sec 17(5). In my view we must check Schedule 1 & Schedule 2 of CGST ACT which are also Contradictory to each other. The Schedule-1 deals with ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOU .....

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the above discussion it is clear that, as the car was purchased before 01.07.2017, there is no question of levy of GST while purchasing of impugned car by the original buyer, accordingly there is no question of availment of Input tax credit & IDEALLY GST SHALL NOT BE LEVIED ON SALE OF OLD CAR. 2) Suppose the car was purchased after 01.07.2017, then also availment of Input tax credit is restricted by sec 17(5) & IDEALLY GST SHALL NOT BE LEVIED ON SALE OF OLD CAR. The Schedule-II deals wit .....

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