GST on sale of car

[KARAN VERMA]

Sir

I m exchange my old car with new car to dealer. Dealer has charged GST on full sale price of new car. But i am not issuing any sale invoice for exchange of my old car. Whether i am liable to pay GST. I am registered under GST.

[KASTURI SETHI]

Dealer has charged GST correctly.

[KARAN VERMA]

Whether i need to charge GST on exchange of old car.

[KASTURI SETHI]

If I sell my old car, it is not in the course of business. See the definition of 'Supply'.

AI Summary

Supply: Private exchange of a used car is generally not a taxable supply; dealer may charge GST on new car. An individual exchanging a personal used car with a dealer ordinarily does not make a taxable Supply because the sale is outside the course of business; the dealer's charging of GST on the full invoiced price of the new car reflects the dealer's taxable supply and, absent business-related facts, the private owner is not required to charge GST on the exchange.