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

AI Summary

No GST on sale of personal-use vehicle at loss under Notification 8/2018-Central Tax (Rate) A registered taxpayer purchased a two-wheeler for personal use without claiming input tax credit and later sold it at a loss after depreciation. The question arose whether GST is payable on the total sale amount. Responses clarified that GST applies only to supplies made in the course of business, so the sale of an asset used solely for personal purposes is not subject to GST. Additionally, if the sale price is below the depreciated value, no GST is payable. Reference was made to Notification 8/2018-Central Tax (Rate) for specific exemptions, indicating that the transaction may be exempt from GST depending on the vehicle's classification under the notification. Therefore, no GST liability arises on the sale of a personal-use vehicle sold at a loss.