GST Rate Change on Sale of all Old and Used Vehicles: No GST on Loss Margin:

GST Rate Change on Sale of all Old and Used Vehicles: No GST on Loss Margin GST Council in its 55th Meeting has increased tax on the sale of all old and used vehicles. The rate change is explained by below given chart. Taxpayers should note that GST is applicable only on the Value that represents the Margin of the Supplier, that is, the difference between the Purchase price and Selling price (depreciated value if depreciation is claimed) and not on the value of the vehicle. Also, it is not applicable in the case of unregistered persons. Let us understand this with the help of an example. Original Car Value: 10L; Sold to Car reseller for 5L; He sells it for 7L; Then GST is applied on the difference of Buy-Sell. Here the GST will be applied on 2L Profit. Suppose in the above example, he sells the car for Rs. 4L, then no GST will apply.