gst on sale of used car

[Madhavan iyengar]

A Company wants to sell a used motor vehicle to its employee

the cost when it acquired the vehicle was rs. 400000/- in 2014 no cenvat was taken at that time now it wants to sell at rs. 150000

treatment under gst in light of notification no rate 08/2018 dated 25/01/2018

whether employer / employee being related party valuation rules would become applicable

[KASTURI SETHI]

In view of the situation explained by you and, especially, in view of Notification No.08/2018-CT (Rate) dated 25.1.18, Rule 28 of CGST Rules, 2017 does not come into picture.

[Ganeshan Kalyani]

Generally company supplies the used car to its employee on the book value as on the date of sale. The book value is as after reducing depreciation as per companies act. And when you work out written down value as per income tax the wdv will be less. So there will be profit and GST is applicable on the margin.

[Ramesh Kothari]

As I understand from GST Act If any value left in book or not it's immaterial the price at which sold GST attract

AI Summary

GST on used vehicle sale: tax may apply on margin or full sale price, notification limits application of valuation rule. Sale of a company's used motor vehicle to an employee may be taxed either on the margin determined by book value after depreciation or on the transaction price irrespective of book value; a cited rate notification indicates that the specific valuation provision (Rule 28) does not apply, and the notification therefore governs the GST treatment, leaving open questions about related party valuation.