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.

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.