GST ON SALE OF OLD TWO WHEELER

[KAMAL SETHI]

Please provide guidance on the Goods and Services Tax (GST) implications for the sale of an old two-wheeler(Bike) used in business, which is shown as a fixed asset.

1. The two-wheeler in question was second hand purchased from unregistered person in july 2018& depreciation was claimed .
2. No Gst was paid & claimed as input during the acquisition of the vehicle

[KALLESHAMURTHY MURTHY K.N.]

Dear Sir,

The captioned vehicle has been taken into account as a fixed asset. When it is resold, the transaction falls u/s 7(1) of the CGST Act. So the tax is required to be collected and discharged irrespective of whether ITC was availed or not.

[Shilpi Jain]

GST would be liable on sale assuming you are a registered person. This would be liable on the sale value at applicable rate.

AI Summary

GST liability arises on sale of business-used two-wheeler; tax payable on sale value irrespective of input tax credit.
GST liability arises on the sale of a business-used two-wheeler treated as a fixed asset by a registered person; the transfer is a taxable supply and tax must be collected and discharged on the sale consideration at the applicable rate, irrespective of whether GST was paid at acquisition or input tax credit was claimed.