SALES OF USED CAR PURCHASED BEFORE 1ST JULY,2017

[SURYAKANT MITHBAVKAR]

As per new changes we have to pay tax @65% of the applicable GST rate on sale of Used Motor Vehicle.

Now our HSN code is 87033310 for Motor Car and rate of GST is @28% +Cess @20% when we sell the used Motor car assuming the same we are liable to pay 65% of the applicable GST i.e. GST @ 18.20% +Cess @13%.

If we raise our tax invoice on GST @18.20% (CGST @9.10% +SGST @9.10%)+Cess @13% but while uploading GSTR1 where we can mention this tax slab since there no provision to enter any other tax except by default tax structure showing in GSTR1.

Pl advice how to enter above transaction (Sale of Used Motor car ) under concessional rate in GSTR1.

AI Summary

GST Reporting on Used Cars: How to Apply Concessional Rate for Sales Before July 1, 2017 in GSTR1 Form A query was raised regarding the Goods and Services Tax (GST) on the sale of used cars purchased before July 1, 2017. The applicable GST rate is 28% with a 20% cess, but a concession allows paying 65% of this rate, resulting in a GST of 18.20% and a cess of 13%. The issue concerns how to report this in the GSTR1 form, which lacks a provision for entering this concessional rate. The response advised that only 65% of the value received should be shown in the taxable column, applying the actual rate of 28% plus 20% cess.