OWN USE VEHICLE SALES DONE FOR LOSS ITS GST PAYABLE FOR TOTAL SALES ?

[DURAI RAJ]

A register Taxpayer Bought Two Wheeler Value of Rs.110000 for own use and same Purchase ITC not claimed FY 2019-20 and sold Vehicle FY 2021-22 for loss of around 26000 after Depreciation and GST Payable for Total Sales ? or not need to pay kindly suggest provisions of act

[Ganeshan Kalyani]

If the sale value is less than the asset value after depreciation as on the date of sale then NO GST.

[Raam Srinivasan Swaminathan Kalpathi]

Please refer Notification 8/2018-Central Tax (Rate).

[Sadanand Bulbule]

In terms of Section 7 of CGST Act, GST applies only to supplies made in the course or furtherance of business. If the asset is used purely for personal use (not in business), its sale is not a supply under CGST Act. So the question of ITC & OPT does not arise on assets used for personal use.

[Shilpi Jain]

You will have to refer to Notification 8/18 Central tax rate to see if your vehicle falls under any of the line items mentioned therein to get the benefit of no tax on this transaction.

AI Summary

Supply in course or furtherance of business: personal-use vehicle sales are not taxable as GST supply, check applicable rate notifications. A sale of a vehicle bought for personal use is not a GST supply if used purely for personal purposes, so GST and ITC reversal issues ordinarily do not arise; check Notification 8/2018 Central Tax (Rate) for any specific rate entries affecting second hand vehicle transfers. One advisory remark compared sale proceeds to depreciated asset value when assessing taxability.