TaxTMI 
TaxTMI 
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?
GST on sale of used Tipper by Contractor.
10 Feb 2024 
8 Replies 
5493 Views Asked by
GST on used tipper may be payable on the profit margin if HSN classification and the central tax notification permit margin treatment.
Whether GST on sale of a used tipper is payable on full sale value or only on profit depends on (i) correct HSN/tariff classification of the vehicle as a goods transport motor vehicle or machinery and (ii) whether that tariff falls within the Central Tax rate notification permitting margin taxation for used goods; if covered, GST may be payable on the margin, otherwise tax applies to the gross sale consideration. (AI Summary)
Whether GST on sale of a used tipper is payable on full sale value or only on profit depends on (i) correct HSN/tariff classification of the vehicle as a goods transport motor vehicle or machinery and (ii) whether that tariff falls within the Central Tax rate notification permitting margin taxation for used goods; if covered, GST may be payable on the margin, otherwise tax applies to the gross sale consideration. (AI Summary)