Question 10 - An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 4 Meaning and Scope of Supply
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Supply in the course of business: sale of a privately used car to a dealer is not taxable. A private individual's sale of a car bought for personal use to a dealer is not a supply under the Model GST Law because it was not made in the course or ... Summary
Supply in the course of business: sale of a privately used car to a dealer is not taxable.
A private individual's sale of a car bought for personal use to a dealer is not a supply under the Model GST Law because it was not made in the course or furtherance of business; no input tax credit was admissible on the acquisition as it was for non business use, reinforcing that the resale lacks taxable supply characteristics.
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