ITC on Purchase of Car and Reversal of ITC & levy of GST on Sale after say 2 years

[SHAILENDRA singh]

Dear All,

Please consider a case where Company 'A' purchases a Car for transportation of passengers and sells it after 2 years of use.

(a). Whether Company 'A' was right in claiming ITC at time of purchase of car?

(b). Is there any provision for reversal of ITC since the Car was sold after using it for 2 years?

(c) Whether 'A' needs to charge GST at time of selling the Car?

(d) Does the 'Yellow' or 'White' number plate makes any difference for the purpose of ITC ?

Thanks!!

AI Summary

GST Implications for Company 'A': ITC Claim and Reversal, GST on Car Sale, Section 18(6) CGST Act A discussion on a forum addresses the Goods and Services Tax (GST) implications for Company 'A' regarding the purchase and sale of a car used for passenger transportation. The queries include whether the company can claim Input Tax Credit (ITC) at purchase, the need for ITC reversal upon sale after two years, GST charges on sale, and the impact of the car's number plate color on ITC. The response confirms ITC can be claimed initially, requires reversal per Section 18(6) of the CGST Act upon sale, GST needs to be charged, and the number plate color does not affect ITC eligibility.