TaxTMI 
TaxTMI 
Reporting the Sale of Motor Vehicles / Capital Goods under GST in Returns Across Various Scenarios
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....eporting the Sale of Motor Vehicles / Capital Goods under GST in Returns Across Various Scenarios <br> Query (Issue) Started By: - Rajagopal K Dated:- 27-11-2025 Goods and Services Tax - GST <br> Got 2 Replies <br> GST<br> <br> 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 ....
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....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 tran....
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....saction 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....
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....) 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 t....
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....his transaction be reported in GSTR-1 and GSTR-3B? --Reply By: Pinnacle Tax Advisor The Reply: Under GST, when a motor vehicle is sold as a capital asset, tax is levied only on the margin, i.e., the difference between the sale value and the written down value (WDV). * If the sale value is less than or equal to the WDV, no GST is payable, and there is no requirement to report the transaction i....
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....n GSTR-1 or GSTR-3B. * If the sale value exceeds the WDV, GST is payable only on the margin (sale value minus WDV). In such cases, only the taxable value along with the applicable GST needs to be reported in GSTR-1 or GSTR-3B. It is important to note that the portion of the sale value up to the WDV is not treated as consideration for supply under GST when the vehicle is sold as a capital asset. ....
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....--Reply By: Ganeshan Kalyani The Reply: The margin i.e. sales value minus the WDV as per Income tax act, is offered to tax. Margin becomes the taxable value and GST on it is furnished in GST return. <br>***<br> Discussion Forum - Knowledge Sharing....