Sale of used car purchased pre GST

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..... Sale of used car purchased pre GST
Query (Issue) Started By: - Vivek anandhan Dated:- 5-8-2019 Last Reply Date:- 14-8-2019 Goods and Services Tax - GST
Got 5 Replies
GST
Dear Experts We have purchased one car for our office usage in pre GST regime, Now we are going to sale in GST regime. Whether we need to charge GST also for the sale used car. Regards Vivekanandhan Reply By DR. .....

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..... MARIAPPAN GOVINDARAJAN: The Reply: In my view GST is not leviable. Reply By Ganeshan Kalyani: The Reply: In my view, GST is applicable on margin i.e. sale value minus written down value computed as per Income Tax Act. Reply By Ganeshan Kalyani: The Reply: Refer Notification No.8/2018-CTR dated 25.01.2018. Reply By KASTURI SETHI: The Reply: The querist has used the words,' for our office .....

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..... usage'. It means car which is to be disposed of was meant for business purpose. The disposal of car is in the course of furtherance of business. So such transaction conforms to definition of 'supply' provided under Section 7 of CGST Act read with Notification No.8/18-CT(R) dated 25.1.18 (Serial no.4) Reply By SHIVAKUMAR GOKARNESAN: The Reply: Car is a business asset in the books of .....

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..... the business entity and claimed depreciation for income tax assessments. GST is applicable on supply of any goods irrespective of purchase before GST or Post GST. The taxable value for such used car shall be " the difference between the depreciated value as on the date of sale and actual sale value realised from buyer. if the difference is positive GST 18% or 12% ( see Notifications Jan 2018 and .....

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..... find in which category the used car falls) is payable on the difference. If the difference is negative you may ignore S. Gokarnesan Advocate , Chennai - 9840087349
Discussion Forum - Knowledge Sharing .....

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