Sale of Old Car

[Jatinder Kumar]

Dear Experts,

We have car in the name of partner (show in partnership firm accounts) so sale of such car to dealer (Selling-Purchasing old / new cars) will attract gst and if yes at what rate.

We also purchase new car from dealer after adjustment of old car price.

Thanks & Regards,

Jatinder Kumar

AI Summary

GST Applicability on Car Sale: 28% GST for Business Sales, None for Personal or Dealer Exchanges, Plus Compensation Cess A query was raised regarding the applicability of GST on the sale of a car owned by a partner but listed in a partnership firm's accounts. Responses clarified that if the sale is personal or involves an exchange with a dealer, GST is not applicable. However, if the sale is part of business operations, a 28% GST is applicable. If the car is sold for further supply, GST is not required, but otherwise, GST applies at the rate of the new car, along with compensation cess. In an exchange scenario, GST is calculated on the full value of the new car.