TaxTMI 
TaxTMI 
Sir. Lorry used for business purpose is sold now, Seller and buyer both are registered under GST, Seller has availed ITC on the purchase of Lorry and not claimed Cess. is 1. GST to be charged on the sale Consideration? 2 .Is Compensation cess to be Charged?
Sale of Lorry -GST implication
06 Jan 2023 
5 Replies 
2395 Views Asked by
Input tax credit on vehicle triggers GST and compensation cess liability on sale of a used lorry unless exemption applies.
Sale of a business-used lorry where the seller availed Input Tax Credit on purchase generally attracts GST and may attract compensation cess, because notifications exempting used-vehicle sales are commonly held inapplicable where ITC was claimed; ITC reversal and adjustment mechanisms govern tax treatment on disposal. (AI Summary)
Sale of a business-used lorry where the seller availed Input Tax Credit on purchase generally attracts GST and may attract compensation cess, because notifications exempting used-vehicle sales are commonly held inapplicable where ITC was claimed; ITC reversal and adjustment mechanisms govern tax treatment on disposal. (AI Summary)