GST on sale of motor vehicle

[MAHENDRABHAI DESAI]

Dear Sir,

We are Pvt. Ltd. Co., we had purchased motor vehicle for use by directors.

Pl. advise whether we have to pay GST when we sell used cars even if we are not in business of dealing in motor vehicles.

Thanks.

[Ganeshan Kalyani]

Yes you have to pay GST @ 28% plus applicable cess.

[Himansu Sekhar]

Sell of used cars attracts gst.

[KASTURI SETHI]

Whether the sale of old and used car is in the course or furtherance of business ? This aspect is vital.

[DR.MARIAPPAN GOVINDARAJAN]

In my view it will attract GST.

GST shall be levied for disposal of business assets vide Schedule II of the CGST Act.

AI Summary

GST on sale of company-owned motor vehicle may apply; levy as disposal of business assets and business purpose matters.
Sale of a company-owned used motor vehicle is treated as a taxable supply under GST, with commentators indicating that the sale falls within the disposal of business assets concept in Schedule II and noting that the question whether the disposal is in the course or furtherance of business is vital to determine taxability and applicable levy including any cess.