SALE OF OLD CAR TO CAR24 OR OTHER DEALER

[MAHESH KOPPANETH UNNIKRISHNAN]

Sir, our company has sold a car to Car24 which is platform who finds bidders and sells it to the dealer and then dealer finally sells it to ultimate customer i.e. old car will be registered only after final buyer is found by CAR24.

CAR24 collects the old car and send the consideration there and then to the company.

My question is, whether selling of old car to CAR24 will be treated as sell and GST TAX invoice it to be raised against CAR24 (it is not registering the car in its name) after receipt of consideration though the CAR will not be registered in CAR24 since it is just a facilitator.

Kindly help to find the suitable solution for GST purpose.

Regards

S.K.Gupta

AI Summary

Company Questions GST on Car Sale to Car24; Invoice Needed Only if Car24 is Buyer, Not Facilitator A company inquires about the GST implications of selling an old car to Car24, a platform that facilitates sales to dealers and ultimately to end customers. The main concern is whether a GST invoice should be raised against Car24, as the car is not registered in Car24's name. Respondents suggest that if input tax credit was not taken at purchase, GST applies to the differential value. If Car24 is not the buyer but merely a facilitator, no invoice is needed for Car24. Clarity on the transaction structure is advised to determine the correct GST treatment.