Sir
we want to sell the old car purchased before July 2107, registered in the name of Firm to another firm duly registered under GST.
Please inform if GST is applicable on sale of old car and if so whether GST input is available to the new buyer.
Please inform the rate of GST if applicable
Regards
D K Aggarwal
GST at 28% Applies on Sale of Old Cars, No ITC for Buyer per CGST Act Provisions A forum user inquired about the applicability of GST on the sale of an old car purchased before July 2017 by a firm to another GST-registered firm. A tax consultant clarified that GST applies at 28% on such sales, but the input tax credit (ITC) is not available to the buyer due to specific provisions in the CGST Act. The discussion evolved into a debate on whether GST on used cars constitutes double taxation, with various contributors highlighting legal interpretations and potential litigation issues. Some argued against the fairness of taxing non-business asset sales, while others referenced specific notifications and rules affecting second-hand goods transactions. The conversation included detailed legal references and differing opinions on GST's applicability under current laws. (AI Summary)
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