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 on sale of used cars: taxable if disposal is in business; dealer resale may be taxed on margin and exchange attracts full value GST.
When the sale of a firm-owned car constitutes a disposal in the course of business, GST and compensation cess apply at the rate for cars. Private sales outside business do not attract GST. Where a dealer purchases for resale, the dealer's onward supply will be taxed and, in exchange transactions, GST and cess are treated as payable on the full invoice value of the new car rather than merely on the net exchange differential.