SALE OF USED MOTOR CAR

[SURYAKANT MITHBAVKAR]

We have to sell our Motor car which is fixed assets in our company purchased before 1st July,2017.

Under Notification No. 08/2018 CT (Rate) mentioned rate of GST with conditions.

Our vehicle is diesel driven motor vehicle of engine capacity of below 1500cc and of length of 4000mm.

Whether the above condition is applicable to GST rate as well as GST compensation Cess.

If yes we have to sell the vehicle without charging of GST rate as well as GST Compensation Cess.

[PAWAN KUMAR]

Dear sir

As per my view gst@12,% and compensation cess nil shall be charged. GST shall be charged on 65% of value on the margin of old used car.

AI Summary

GST on used motor car applies; taxable base limited to a portion of the margin and compensation cess not leviable.
GST is chargeable on the sale of the used motor car while compensation cess is not leviable; GST is to be computed on the margin for the used car, applying to a prescribed proportion of the value of the margin rather than the full sale consideration.