Regarding Transfer Of Motor Vehicle Without Consideration.

[Shyam Agarwal]

Sir, Mr.A purchased a Motor Car as a business assets in GST Era. But as ITC is blocked,He has not taken the ITC of the same. Now, He wants to Gift the same to his relative WITHOUT CONSIDERATION.

1.Whether GST is payable on Gift of such car as clause 4(a) of Schedule-II says about applicability of GST on business asset even without Consideration, even with or without ITC?

2.If yes, How GST shall be computed

3.whether your reply differ, If He taken away for his personal use?

[CASusheel Gupta]

Schedule II is to be used only as guidance to classification of any supply, i.e. whether a supply is supply of goods/services.

As per schedule I, disposal of business assets where input tax credit has been availed on such assets shall be treated as supply even if it is without consideration.

No GST is to be charged.

[DR.MARIAPPAN GOVINDARAJAN]

GST is not leviable.

AI Summary

Supply treatment of business assets without consideration not triggered where input tax credit was not availed, so GST not leviable. Whether transfer of a business motor vehicle without consideration is a taxable supply depends on whether Input Tax Credit was availed. Schedule I treats disposal as a supply only when ITC has been claimed; Schedule II is classification guidance. Because the taxpayer did not take ITC on the car, gifting it or taking it for personal use does not trigger the deemed-supply rule and GST is not leviable.