Sir, in case of second hand car sale, if there is profit to seller, then he is liable to pay GST on @18 % on such profit amount i.e sale price less WDV.
My question is whether I can assume that such profit amount is inclusive of GST and calculate GST with valuation rule profit amount X 18% (118%).
GST on Second-Hand Car Sales: Sale Price Can Include GST if Not Charged Separately, Requires Documentary Proof A query was raised about the Goods and Services Tax (GST) on the sale of second-hand cars, specifically whether the profit amount is inclusive of GST when not charged separately. Responses indicated that if GST is not separately collected, the sale amount can be considered inclusive of GST, calculated using the formula: sale value x 18/118. However, it was noted that documentary evidence is required to prove the inclusion of GST in the sale price to claim cum-tax benefits. References were made to case laws emphasizing the need for clarity on whether the price includes taxes to avoid disputes. (AI Summary)
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