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 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.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
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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