What rate GST should be charged on the new car purchased by the company when sold after using it for business purposes?

What rate GST should be charged on the new car purchased by the company when sold after using it for business purposes?

Meetu Kumari | Jul 7, 2022 |

What rate GST should be charged on the new car purchased by the company when sold after using it for business purposes?

What rate GST should be charged on the new car purchased by the company when sold after using it for business purposes?

The applicant, M/s. Dishman Carbogen Amcis Limited, purchased an SUV car for Rs. 80 Lakhs for business use and did not avail of GST Input Tax Credit at the time of purchase as it is restricted under Section 17(5) of the CGST Act, 2017 but claimed depreciation under the Income Tax Act, 1961. The Written Down Value of the car as per books of accounts is Rs. 47 Lakhs at the time of selling and the applicant intends to sell the car and charge GST. The question before the authority was at what rate GST should be charged on the new car purchased by the company when sold after using it for business purposes.

The authority found that the subject car has an engine capacity exceeding 1500 cc, with diesel as its fuel. As the applicant submits that it has not availed ITC, the used car falls under the category of Serial No. 3 to Notification 8/2018-CT (R). The authority held that the value for intended supply shall be the difference between the consideration received for the supply of said car and the depreciated value of the said car on the date of supply, depreciation would be as per Section 32 Income Tax Act and GST rate leviable is 18% (9% CGST & 9% SGST).

To Read Judgment Download PDF Given Below:

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
UP Board Result 2024: Scrutiny of UP Board Class 10th and 12th Copies will be done in a Week, know when the results will be out CBSE Class 10th and 12th Board Exam Results 2024: Evaluation Process Going on; Result Expected on this Date BSEB Class 12th Result Scrutiny: Apply Now for Recheking if not dissatisfied with BSEB Class 12th Result 2024 Important Update for IGNOU Students: IGNOU Extends Last Date for Submitting June 2024 Online Exam Forms UGC Allows NET Scores for PhD Admissions Starting from Academic Session 2024-25View All Posts