GST on sale of used Tipper by Contractor.

[Venkatesh Dhongadi]

One of my client who is a Govt. contractor bought tipper for his use in Govt. works during FY 2015-16 and VAT ITC was not taken. Now during this FY this tipper was sold for 17.56 lakhs. WDV as per books was Rs. 11.70 lakhs. GST has to be paid on Sale value of Rs. 17.56 or only on profit amount of Rs. 5.86?

AI Summary

Contractor's GST on Used Tipper Sale: Clarification on Profit Margin and Tariff Item 8704 23 90 A contractor inquired about the GST obligations on selling a used tipper bought for government work in FY 2015-16, originally without VAT ITC. The sale price was 17.56 lakhs, with a written down value of 11.70 lakhs. Responses discussed the applicable GST, referencing Notification No. 8/2018-CT R and various tariff classifications under Chapters 84 and 87. It was clarified that tippers are classified under Tariff Item 8704 23 90, as per a Supreme Court ruling, and GST should be considered on the profit margin. The discussion highlighted the importance of current legal precedents.