TaxTMI 
TaxTMI 
Sale of Old Car as scrap
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....ale of Old Car as scrap<br> Query (Issue) Started By: - Kavita Sharma Dated:- 8-11-2017 Last Reply Date:- 16-11-2017 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>If a firm sells its 15 years old Wagonr car (not in running condition) as scrap, what will be the applicable GST rate on such sale. Regards Reply By Rajagopalan Ranganathan: The Reply: Madam, It depends upon by which materi....
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....als the Wagon car is made of. If it is of Iron then then such scrap is classifiable under heading 7204 and attract 9% CGST vide Sl. No. 199 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended. If it is any other material then refer to the same notification and find out rate of tax. Reply By Ganeshan Kalyani: The Reply: In my view it should be classified under....
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.... HSN 8703 attracting 28% plus 1% cess. Reply By subramanian vijayakumar: The Reply: I ENDORSE GANESAN SIR VIEW Reply By KASTURI SETHI: The Reply: I support the views of Sh.Ranganathan Sir. Reply By KASTURI SETHI: The Reply: Dear Querist, All goods whether made by human-beings or nature have shelf-life. Govt. has fixed shelf life of a car or any vehicle for 15 years. Depending upon upkeep an....
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....d maintenance, shelf life can be increased by 5 or 10 years.Ultimately a day comes when a car(vehicle) is declared junked because it cannot serve the purpose for which it has been made. When any vehicle or any goods does not serve the purpose for which has been made, becomes junk (or we may say 'scrap'). Thus the character of the goods is changed. Here we cannot call this vehicle a car now....
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..... It is a scrap. Any vehicle is made of iron, copper, brass, aluminium, steel etc., so junked car is left with these kinds of scrap. All these kinds of scrap fall under different HSNs i.e. 72,73,74,76 under different sub-heading nos. and attract different rates of tax under GST Tariff Act. In view of above, old & used car (declared scrap) cannot attract rate of tax under HSN meant for a car. Her....
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....e it is worthwhile to mention that the phrase, "scrap generated in the course of manufacture of excisable goods' is a matter of bye gone era and hence not relevant under GST because GST is on supply of goods and services. Reply By Ganeshan Kalyani: The Reply: Do we need to dismantle the car and then sell each and very parts of the car as scrap because its not a car even though it is in ....
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....the shape of car. Please share your view.<br> Discussion Forum - Knowledge Sharing ....