Taxability on Sale of Old & Used Commercial Vehicle

[Kush Lodha]

Hi,

I have purchased a Mahindra Bolero Camper (Goods carrying vehicle having tonnage capacity less than 5MT) in the year 2013 (HSN Code - 87042190) and on which no ITC was availed. The WDV as on 01.04.2020 in the books is 147350 and i am selling it after using it for more than 5 years for ₹ 120000/-. I wanted to know what is the GST Tax liability on the sale of above vehicle, Whether to be taken on transaction value or not and what will be the GST tax rate and also what about compensation cess?

AI Summary

GST on Selling Used Business Vehicle: 12% on Margin Over WDV, No ITC Impact A user inquired about the GST liability on selling a used Mahindra Bolero Camper, which was a business asset with no input tax credit (ITC) availed. The discussion clarified that GST is applicable on the transaction value of used vehicles, regardless of ITC status, at a rate of 12%. If the vehicle's sale price exceeds its written down value (WDV), GST is payable on the margin. The forum emphasized understanding the applicable notifications and valuation rules, noting that no GST is due if the sale price is less than the WDV, as clarified through detailed responses and examples.