GST paid on margin of car sale

[KARAN VERMA]

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%).

AI Summary

Cum-tax valuation: treat secondhand car sale profit as GST-inclusive when tax not separately charged, subject to evidential proof.
Where GST is not separately charged on resale of a second hand car, the seller may treat the received consideration as GST inclusive and use Rule 35's backward calculation to extract tax, but Rule 35 requires documentary evidence that the price was agreed to be inclusive of tax and authorities will scrutinise such proof before admitting the cum tax benefit.