GST on Used Commercial Vehicles

[Mr Patel]

One of our clients is engaged in the Passenger Transport Services who has sold some buses to related parties as well as others, Buses was purchased before GST (no Input credit was availed) , wether GST is applicable in this case, if yes how much to be charge?

Clients does not have the GST number since he is providing Transport of passengers, with or without accompanied belongings by non-air conditioned contract carriage for transportation of passengers.

Please provide your opinion..

[Ganeshan Kalyani]

In my view, you should be liable to register under GST first. Once you are registered then you will have to pay 65% of the CGST & SGST payable.

AI Summary

GST on used commercial vehicles requires registration and payment of a specified portion of central and state tax due on sale. The operator must obtain GST registration because the sale of used buses purchased pre GST without input tax credit is a taxable supply; after registration the operator should discharge a specified portion of the combined central and state tax payable on those sales (recommended as 65% of the CGST and SGST liability).