CA Puja Ravindra Vengurlekar
In order to make used cars more affordable, the GST Council announced a reduction in the tax rate on Old used vehicle transactions in its meeting held on January 18, 2017. The tax rate on used old car transactions has been reduced to 18 percent for large cars and SUVs, and 12 percent for small vehicles, from 28 percent (for both categories) earlier. The new rates have come into effect from January 25, 2018.
Government has issued Notification No. 8/2018 Central Tax Rateread with State Tax Rate Notification & Notification No. 1/2018 Compensation Cess Rate reduced the Rate of GST & exempted the Cess on old and used vehicle as follows:
| Sr. No. | Particulars | HSN | Engine Capacity | Length | Intrastate | Interstate | Cess (Rate) | ||
| CGST | SGST | Total | IGST | ||||||
| 1 | Petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles | 8703 | > 1200 CC | > 4000 mm | 9% | 9% | 18% | 18% | NIL |
| 2 | Diesel driven motor vehicles | 8703 | > 1500 CC | > 4000 mm | 9% | 9% | 18% | 18% | NIL |
| 3 | Sports Utility Vehicles (SUVs) including utility vehicles | 8703 | > 1500 CC | 9% | 9% | 18% | 18% | NIL | |
| 4 | All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3 | 87 Others | 6% | 6% | 12% | 12% | NIL | ||
Valuation of for the purpose of charging GST on supply of such goods will be as follows:
| Sr. No. | Particulars | Margins * | |
| 1 | in case of a registered person who has claimed depreciation under section 32 of the Income-Tax Act,1961(43 of 1961) on the said goods | Consideration Received (-) Depreciated Value (WDV) | # # |
| 2 | In any other case | Selling Price (-) Purchase Price | # # |
* Margin for this purpose means that Value on which GST should be charged
## If the difference is positive then charge GST on that Positive difference i.e Margin Amount
## If the difference is Negative then GST shall be ignored
This notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.
i have sold commercial vehicle as scrap value less than WDV Value, can i charge gst or not.
Dear Madam
I have a Small Doubt in GST on Second hand Car Sales. I Purchased New Car in VAT Act on 31-05-2017 but Vat input is Not claim in my VAT Input Account.This Car is show in Fixed Assets head in My Accounts. Regularly Deprecation claim as per Income Tax Act.
If I Sale the Car should I pay the GST Tax
Please Clarify the Doubt
sir car (wdv) value dt. 1.4.2019 rs. 128753/-& sales dt. 15.11.2019 rs. 122000/- libility gst
Dear Sir,
if I will sale my used old car registered in the name of pvt. ltd. co., how much GST % applicable on the sale of car, should I generate another invoice to seller ?
how much gst rate of old unserviceable truks and bus? how can we will calculate GST if purchase a old truck in Rs.5,00,000/- & sale in Rs.5,50,000/-
how much gst rate of old unserviceable truks and bus?
Can GST is apply on sale of used school vans by a college (exempt from GST registration) .
1. sale to Un registered GST dealer
2. sale to a registered GST dealer
3.sale to a individual person
4. sale to a firm/a person , who is using for his Travels business and hiring business.
Q. I have a Audi Car in my name, which is the asset of our partnership firm and all the exps. e.g. running & maintenance, insurance are made by the firm and firm has claimed the depreciation also. Now I have to sell this car, is there any liability of GST on the firm.
Hi – I have a question and I wonder if you can answer that. My company leased a vehicle from a leasing company and gave it to me to use. As per agreement if I break lease then I have to buy the car. Now the leading company has quoted 28% gst and 20% Cess. Is that right ? The lease started pre gst and leasing company had not claimed imputbcredit on the same
Please confirm the GST percentage to sale of old goods carrier Mahindra Bolero Pickup
Whether the same is applicable to all the dealers or only to those who deals in second hand goods as in the Margin scheme? Please clarify.
This notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.
WHAT IS THE TAXATION ON SALE OF OLD VEHICLE ON WHICH SUPPLIER TAKEN INPUT TAX CREDIT
https://taxguru.in/goods-and-service-tax/margin-scheme-gst-wanted.html
Would like to know, if this view would apply even to those registered assessees who are not in the business of supplying used cars?
Because, FAQs issued by CBEC highlight that the benefit of margin scheme will extend only to those assessees who are in the business of supplying used cars.
Thanks