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.

[So B]

The Invoice value will be sum total of value received plus taxes but in taxable column only the 65% of the value received is to be shown on which the actual rate (i.e 28%+20%) will be applied.

AI Summary

Concessional GST on used motor vehicles: report reduced taxable value and apply full statutory rates to that portion in returns. Concessional GST on sales of used motor vehicles purchased before the cut off requires computing tax on a reduced taxable base equal to sixty five percent of the sale consideration. The invoice should show the gross consideration plus taxes, while the taxable value field for GST computation and return reporting must record the reduced base to which the full statutory GST and cess rates are applied.