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

GST liability: sale of used passenger car as scrap attracts no GST when there is no profit under 8/2018. Advises that 8/2018-CT R applies to the proprietorship's disposal of the passenger car as total loss for scrap, and because the sale produces no profit (scrap value only), there is no GST liability on the transaction.