ISSUANCE OF TAX INVOICE ON SALE OF BIKE/ CAR SHOWN IN FIXED ASSET

[Allauddin Patel]

Dear sir/ madam

my question is

we are registered in GST as proprietor frim. we purchased bike and car and shown in fixed asset and claim depreciation, at the time of selling bike and car to individual person who is not register in gst, do we need to issue tax invoice to that individual ...?

kindly reply to me

[Sadanand Bulbule]

Yes, you have to issue a GST Tax invoice.

[Allauddin Patel]

According margin scheme ....

If sale value is 500000

Wdv is 400000

So we need to issue tax invoice on 100000 +18% GST .....am I correct ...?

If sale value is 400000 

Wdv is 500000

 its loss ...so do we need issue tax invoice with zero tax rate or bill of supply ?

[Sadanand Bulbule]

Refer Rule 32(5) of the CGST Rules, 2017

[Raam Srinivasan Swaminathan Kalpathi]

You may refer to Notification 8/2018-Central Tax (Rate) which provides clear guidance on the margin scheme enunciated by the experts heretofore. 

Thanks

[Shilpi Jain]

If the sale results into a loss - no GST liable and hence no document to be issued. Pls note that it is not an exempt supply just that the valuation is zero

AI Summary

Sale of used business vehicle: apply GST margin scheme; tax on positive margin, no GST if sale below WDV.
Sale of used business vehicles to unregistered persons is valued under the GST margin scheme: taxable value equals the positive margin between sale consideration and written down value, with GST on that margin. If sale consideration is below written down value (a loss), no GST is chargeable and no tax invoice is required; the transfer is not an exempt supply but has zero valuation for GST purposes.