GST on sale of Motorcar

[NISHANT SHAH]

Dear All,

My Partnership firm had purchased Motorcar in Pre-GST regime and had been used exclusively for the purpose of Business& Profession. We claimed depreciation till date and while computing its current value, loss is occured. Now, our firm want to sell this motorcar, what implication arised from GST point of view.?

Now, following question arise

1) whether we need to pay GST on sale of Motorcar?

2) if so on which amount do we need to pay GST ??

3) & if no then please provide me supported reference for non-applicability of GST & vice-versa.

Thanks to all experts in advance.

[Venkataprasad Pasupuleti]

1. If the margin is negative, no GST liability arises.

2. Same as above

3. Refer Notification No. 8/2018-C.T. (Rate), dated 25-1-2018

[NISHANT SHAH]

Thanks Sir for your valuable reply with ref.

[KASTURI SETHI]

In support of the reply of Sh. Venkata prasad Pasupuleti, CA, pl. also see page 138-139 of Vol.29, Part-4, of GST Law Times, Issue 24th October, 2019.

[NISHANT SHAH]

Kasturi Sir can you please elaborate the suggested reference since I don't have paid version

to watch said book.?

[KASTURI SETHI]

Pl. let me know your email Id. I shall send scanned copy of relevant page.

[NISHANT SHAH]

[email protected]

AI Summary

GST on sale of motorcar: no GST liability where the seller's margin on sale is negative under rate rules. GST on sale of a motorcar used exclusively for business is determined by the seller's margin; where the computed margin on disposal is negative, respondents indicate no GST liability, relying on the rate notification addressing margin treatment for used goods.