TaxTMI 
TaxTMI 
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
Sale of Old Car as scrap
08 Nov 2017 
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Scrap classification determines GST treatment: categorize a junked vehicle by its constituent metals to apply corresponding GST rates.
GST treatment of a junked vehicle depends on its classification as scrap by constituent material rather than as a motor vehicle; such scrap is allocated to metal-scrap HSNs (chapters 72, 73, 74, 76) and taxed at the rates corresponding to those scrap headings, and a practical question arises whether dismantling is required to allocate parts to specific HSN entries. (AI Summary)
GST treatment of a junked vehicle depends on its classification as scrap by constituent material rather than as a motor vehicle; such scrap is allocated to metal-scrap HSNs (chapters 72, 73, 74, 76) and taxed at the rates corresponding to those scrap headings, and a practical question arises whether dismantling is required to allocate parts to specific HSN entries. (AI Summary)