1.Business line is manufacture of Transformer. Motor Car purchased in VAT era (No ITC taken) used as capital asset, now sold, whether GST is applicable on sale of motor car. If applicable, whether GST is to be charged on profit on sale of motor car or the entire sale proceeds.?
2. If car was purchased in GST era and sold in GST era(no ITC taken but depreciation has been taken),whether GST is payable and if payable on what value GST shall be payable i.e. whether on sale realisation value or profit on sale of motor car ?
GST on Motor Car Sale: Tax Charged Only on Profit Margin Per Notification No. 8/2018-CTR, Not Full Proceeds. A forum participant inquired about the applicability of GST on the sale of a motor car, both purchased in the VAT era and the GST era, without claiming input tax credit (ITC). The main question was whether GST should be charged on the profit or the entire sale proceeds. The responses referenced Notification No. 8/2018-CTR, indicating that GST applies only to the margin between the sale proceeds and the depreciated value according to income tax rules. Other participants agreed with this interpretation, confirming GST is applicable on the margin in both scenarios. (AI Summary)
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