Sale of used vehicle by a registered dealer not dealing in vehicle either as dealer or hirer

[Silu Jose]

Please clarify the following:

A registered dealer sold a used vehicle. Vehicle was purchased in the VAT regime. Sold the vehicle prior to January 2018. Input credit not claimed by dealer while vehicle purchased. What is the GST implication on sale of the used vehicle. What will be the (taxable) value for GST and the GST rate.Is the Notification No.8/2018-Central tax applicable here?

The dealer is a service provider and does not deal with vehicles, (hire/sale). The vehicle was used for business purpose and depreciation claimed.

[KASTURI SETHI]

Notification No.8/2018 CT (R) dated 25.1.18 is not applicable to this scenario. If no date is specified in the notification, it is always applicable from the date of issue/publication. This notification is not applicable retrospectively. Regarding the remaining part of query, earlier notification was issued which has to be traced out. Reply has already been given in this forum by the experts in the year 2017. I think Sh.Ganeshan Kalyani Ji has given reply You are to trace out that reply in this forum.

[KASTURI SETHI]

Pl. go through replies against Issue ID No. 113103 dated 24.11.17.

AI Summary

Notification applicability: GST notification not applied retrospectively to sale of a pre-GST used vehicle by a non-dealer service provider.
The key operative point is that Notification No.8/2018-Central Tax (Rate) is not applicable prospectively to the sale of a used vehicle acquired under the VAT regime where input tax credit was not claimed; the seller is a service-provider not trading in vehicles and earlier notifications and prior forum replies must be consulted to determine taxable value and applicable GST rate under transitional provisions.