Sale of Second hand car

[Naina Chowdary]

Dear Sir/Mam,

I bought a car by paying VAT under installment basis scheme provided by the org I am working in. The car is reg under the org name. As i left the org, now i want to buy the same from my org . The org has availed the dep on it. They are Ready to sell the car at WDV.

Now the sale is an Inter State sale. But while paying installments i paid VAT. Is GST applicable?

AI Summary

GST applicability on sale of used vehicles: tax applies and valuation follows margin of supply method.
Sale of a second hand vehicle by an employer to an employee is a taxable supply under GST despite prior VAT paid; inter state character does not exclude GST. Valuation uses the Margin of Supply: if depreciation was claimed, margin = sale consideration minus Written Down Value; otherwise margin = sale price minus purchase price; tax applies only to a positive margin. Applicable GST rates vary by vehicle engine and class and compensation cess on used vehicle sales is exempted.