TaxTMI 
TaxTMI 
A Commercial Goods Heavy Vehicle was bought in pre gst era 2001 and sold in GST era in August 2017 what is the GST rate including cess applicable on such sale and how the taxable value is computed if no GST was collected along with sale consideration.
GST on sale of Commercial Goods Vehicles
29 Feb 2020 
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GST on sale of used commercial goods vehicles depends on notifications, abatements and prior input credit status.
GST applies to sales of used commercial goods vehicles; taxable value and rate depend on applicable notifications and whether pre GST input/cenvat credit was claimed. Abatement treating 65% of transaction value as taxable applied where no prior credit was taken, but if transaction value is below depreciated value tax is computed on depreciated value. If prior input/cenvat credit was availed, concessions and abatement are not available and the full notified rate applies. Notification amendments also affect compensation cess treatment and tariff classification informs rate selection. (AI Summary)
GST applies to sales of used commercial goods vehicles; taxable value and rate depend on applicable notifications and whether pre GST input/cenvat credit was claimed. Abatement treating 65% of transaction value as taxable applied where no prior credit was taken, but if transaction value is below depreciated value tax is computed on depreciated value. If prior input/cenvat credit was availed, concessions and abatement are not available and the full notified rate applies. Notification amendments also affect compensation cess treatment and tariff classification informs rate selection. (AI Summary)