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.

[Guest]

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

AI Summary

Private company must pay 28% GST on selling used cars bought for directors, per Schedule II of CGST Act. A private limited company inquired whether they need to pay GST on the sale of used cars, which were initially purchased for directors' use, despite not being in the motor vehicle business. Five responses confirmed that GST is applicable. Ganeshan Kalyani specified a 28% GST rate plus cess, while Kamal Arora referenced Schedule II of the CGST Act, indicating that GST applies to the disposal of business assets. Kasturi Sethi highlighted the importance of determining if the sale is in the course or furtherance of business.