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

AI Summary

Selling Old Business Two-Wheeler: GST Applies Under Section 7(1) of CGST Act, Even Without Input Tax Credit. A query was raised regarding the Goods and Services Tax (GST) implications on selling an old two-wheeler used in business and recorded as a fixed asset. The vehicle was initially bought second-hand from an unregistered person in July 2018, with depreciation claimed but no GST paid or claimed as input. Responses indicated that upon resale, the transaction falls under section 7(1) of the CGST Act, requiring GST collection, regardless of input tax credit (ITC) status. If the seller is registered, GST applies to the sale value at the applicable rate.