Sale of Old car Purchased before GST regime

[DK AGGARWAL]

Dear Sir

We purchased a car before GST regime in May 2017. Now we have sold the car as under. Please inform the GST tax implications

Cost in May 17--------------------------------------------------8 lac

Depreciated value as per books-------------------------------6 lac

Sold now-----------------------------------------------------------4 lac

Please inform if any tax is to be charged

Regards

D K Aggarwal

AI Summary

GST on resale of pre GST used car: margin scheme eligibility and dealer status determine taxability on sale.
Sale of a motor vehicle acquired before GST raises whether GST applies on resale and whether the margin scheme can be used. No GST is indicated where the seller is not a dealer and the margin is negative, but the margin scheme may be unavailable if the seller previously claimed depreciation or availed pre GST credits. Assessments should consider the seller's dealer status, prior credit or depreciation claims, and applicable government notifications regulating second hand goods and margin treatment.