Old passenger car sale GST Impact

[siby jose]

Sir, Proprietorship firm Purchase a car without GSTIN in purchase Invoice, accounted as Asset in 2021. Now sale it as Total loss for a scrap value. This sale GST are applicable? If so rate?

[Shilpi Jain]

8/2018-CT R will be applicable whereby since there is no profit on sale of car, there will be no GST liability.

AI Summary

No GST on Scrapped Car Sale by Proprietorship Firm Under Notification 8/2018-CT R Due to No Profit Made. A proprietorship firm purchased a car in 2021 without a GSTIN on the purchase invoice and accounted for it as an asset. The car is now being sold for scrap value due to total loss. A query was raised about the applicability of GST on this sale. The response clarified that under notification 8/2018-CT R, there is no GST liability since there is no profit from the sale of the car.