Transfer/sale of used motor vehicles for a consideration at wdv,Rate of Tax ? Marginal scheme applies? can recipient avail ITC ?

[SOPL SOPL]

Sir/madam,

I explained my issue with a practical instincts

Motor vehicles are purchased by supplier in VAT era, and also ITC not availed, at present the referred vehicles are selling at WDV value + 5% margin

sale or Transfer of motor vehicles (No.10) =63,00,000/-

Depreciation taken as per IT act

Wdv of 10 vehicles is 60,00,000/-

Here my doubt is,

valuation in case of sale of motor vehicle ?

is margin scheme - i.e, Notification no.8/2018-central tax rate dated 25.01.2018

as per this notification tax is payable on margin value (consideration received- wdv)

rate of tax =18 %

is this notification is applicable for sale of motor vehicle ?

Suppose, if above notification doesnot applies , please specify the reason and also mention alternative implications , i.e, rate of tax, taxable value for GST implications

Thanking in advance

Regards

Gowtham

AI Summary

GST on Selling Used Vehicles: 18% Tax on Margin Value as per Notification No. 8/2018. Input Tax Credit Not Available. A user inquired about the tax implications under GST for selling used motor vehicles at written down value (WDV) plus a 5% margin, specifically questioning the applicability of Notification No. 8/2018 and the possibility of availing Input Tax Credit (ITC). Two responses were provided. One responder confirmed that the sale of these vehicles is subject to an 18% tax rate as per the mentioned notification, which applies to the margin value. The other responder agreed, stating that the notification is applicable for such transactions involving old and used motor vehicles.