Business of assessee is not selling of cars i.e. car is used for directors for business purpose. As per income tax wdv of car is Rs. 162670/- as on 31.03.2018 As per roc/books wdv of car is Rs. 4530/- as on 31.03.2018 Car sold in July 2018 for Rs. 151000/- Car purchased in 2011 for Rs. Around Rs. 5.44 lacs. CAR IS OF PETROL AND 1197 CC Whether in GST applicable and if yes, at what rate ? Please guide,
You will have to pay GST as per schedule II of cgst act and it shall be paid at 12% on the margin amount i.e. sale value less wdv as per income tax.
Since in your case wdv is more than sale price therefore no need to pay GST.
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As the car was purchased before 01.07.2017 i.e. before the GST implementation and assuming that the Cenvat paid i.e. Excise duty and VAT was claimed as cost of acquisition and not as Input tax credit at the time of capitalization of the cost.
In such scenario, you need to pay GST @ 12% on the Margin of supply i.e. difference between the sale price and depreciated value as per Income tax. In your case, as the depreciated value as per the income tax is more than the sale price i.e. margin of supply id negative therefore no GST would be levied. For cars having CC less than 1200 CC, 12% rate is applicable. Depreciated value should be of the date of sale of old car.
The primary condition is that you did not availed Input tax credit at the time of capitalization of the cost.
Hi,
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However, in your case - The depreciated value is more than sales value , there is no GST liability.
Hi
Yes, GST shall be applicable. GST shall be charged on the margin amount ( sales value less WDV of car as per Income tax).
The rate would be 12% (18% for SUV) - Refer Notification No. 8/2018 -Central Tax (Rate) dated 25thJanuary, 2018.
