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

AI Summary

GST on Employee Vehicle Sale: Profit Margin Basis vs. Book Value Debate; Rule 28 Not Applicable A company plans to sell a used motor vehicle to an employee for Rs. 150,000, originally purchased for Rs. 400,000 in 2014 without claiming CENVAT credit. The discussion addresses GST implications under Notification No. 08/2018 dated 25/01/2018. One reply indicates that Rule 28 of the CGST Rules, 2017, does not apply. Another suggests that GST is applicable on the profit margin, calculated as the difference between the book value and the sale price. A third opinion states that GST is applicable regardless of the book value at the time of sale.