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

GST on sale to intermediary platforms: invoice the purchaser if platform buys; valuation hinges on input tax credit status.
If the platform purchases as principal the supplier must invoice the platform notwithstanding registration in the end buyer's name; if the platform is only a facilitator, invoice the ultimate buyer. Where no input tax credit was taken, GST is payable on the differential between sale proceeds and depreciated value; where input tax credit was taken, tax is payable on the full value of supply and compensation cess applies. Verify how the platform bills to determine the correct party to invoice and the applicable valuation rule.