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 sale of used commercial vehicle: tax calculated on margin over written down value; no tax if margin negative.
Sale of an old vehicle for consideration constitutes supply and attracts GST. For a registered person who claimed depreciation, taxable value under the notification is the margin equal to selling price minus the written down value (WDV), with any negative margin ignored; where no depreciation was claimed, margin is selling price minus purchase price, negative margin ignored. Valuation Rules and the rate notification must be read together; compensation cess on such vehicles was removed by amendment.