Reporting the Sale of Motor Vehicles / Capital Goods under GST in Returns Across Various Scenarios

[Rajagopal K]

Experts’ Opinions Requested on the Following Scenarios:

1. Sale of Motor Vehicle - No GST Charged (Sale Value Less Than WDV)

Question:

If the sale value of a motor vehicle is less than the written down value (WDV) and no GST is charged (e.g., sale value Rs. 47,000, WDV Rs. 48,000), how should this transaction be reported in GSTR-1 and GSTR-3B?

2. Sale of Motor Vehicle - GST Charged (Sale Value Greater Than WDV)

Question:

If the sale value of a motor vehicle is greater than the WDV and GST is charged (e.g., sale value Rs. 50,000, WDV Rs. 48,000), how should this transaction be reported in GSTR-1 and GSTR-3B?

3. Sale of Capital Goods (No GST Claimed, No GST Charged)

Question:

For the sale of a motor vehicle (capital goods) where no ITC was claimed at purchase and no GST is charged on the sale (e.g., sale value below WDV, no GST), how should this transaction be reported in GSTR-1 and GSTR-3B?

4. General Reporting of Loss on Sale of Motor Vehicle (No GST Charged)

Question:

If a motor vehicle is sold at a loss (sale value less than WDV) and no GST is charged, how should this be reported in GSTR-1 and GSTR-3B?

5. Reporting of Sale of Capital Goods (No GST Claimed, Sale Value Less than WDV)

Question:

If a capital good (motor vehicle) is sold at a loss (sale value less than WDV), no GST is charged, and no ITC was claimed at the time of purchase, how should this transaction be reported in GSTR-1 and GSTR-3B?

AI Summary

GST on sale of capital goods: tax only on margin over WDV, nil GST when sale below WDV, Sec 18(6) A taxpayer sought guidance on GST reporting for sale of motor vehicles/capital goods in multiple scenarios, including where sale value is below or above written down value (WDV), with or without ITC and GST. Experts clarified that, when sold as capital assets, GST is levied only on the margin (sale value minus WDV). If sale value is less than or equal to WDV, no GST is payable and the transaction need not be reported in GSTR-1 or GSTR-3B. If sale value exceeds WDV, only the margin is treated as taxable value, and corresponding GST on that margin must be reported in the relevant GST returns.