GST on Sale of Business Assets

[NARENDER YARRAGORLA]

A GST Reg Persons bought a truck for business purpose in 2019 and now he wants to sell the vehicle, if so whether the sale attracts GST or not?

AI Summary

GST Applies to Truck Sale for Business Use: Pay ITC Amount or Tax on Sale Price, Per Section 18(6) CGST Act A registered business owner inquired about the applicability of GST on the sale of a truck initially purchased for business purposes. Respondents clarified that GST applies to such transactions. According to Section 18(6) of the CGST Act, 2017, if input tax credit (ITC) was claimed on the truck, the seller must pay an amount equal to the ITC taken, adjusted by prescribed percentages, or the tax on the transaction value, whichever is higher. If no ITC was claimed, GST is payable on the transaction value, i.e., the sale price to an unrelated buyer.