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 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.