Sale of Old Car as scrap

[Kavita Sharma]

If a firm sells its 15 years old Wagonr car (not in running condition) as scrap, what will be the applicable GST rate on such sale.

Regards

AI Summary

Debate on GST Rate for 15-Year-Old Car Sold as Scrap: Iron Scrap vs. Vehicle Classification. A firm inquires about the applicable GST rate for selling a 15-year-old, non-functional car as scrap. One respondent suggests classifying the car as iron scrap under heading 7204, attracting 9% CGST. Another argues it should be classified under HSN 8703, attracting 28% plus 1% cess. Others support these views, emphasizing that the car, now considered scrap, should be taxed based on its material components, not as a vehicle. The discussion highlights the need to classify the car's materials under appropriate HSN codes for accurate GST application.