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?
No GST on Gifted Business Car Without Consideration if No Input Tax Credit Claimed, per Schedule I. A discussion was held regarding the transfer of a motor vehicle without consideration under GST regulations. The issue was whether GST is payable when a business asset, a motor car, is gifted without consideration, as per Schedule II, which addresses GST applicability on business assets. The first response clarified that Schedule II is for classification guidance and that Schedule I states GST applies only if input tax credit (ITC) was availed. Since ITC was not claimed, no GST is due. The second response concurred, confirming that GST is not applicable in this scenario. (AI Summary)
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