ITC on Purchase of Car and Reversal of ITC & levy of GST on Sale after say 2 years, Goods and Services Tax - GST

[shailendra singh]

Dear All,

Please consider a case where Company 'A' purchases a Car for transportation of passengers and sells it after 2 years of use.

(a). Whether Company 'A' was right in claiming ITC at time of purchase of car?

(b). Is there any provision for reversal of ITC since the Car was sold after using it for 2 years?

(c) Whether 'A' needs to charge GST at time of selling the Car?

(d) Does the 'Yellow' or 'White' number plate makes any difference for the purpose of ITC ?

Thanks!!

Posts / Replies

[Himansu Sekhar]

A. Yes

B.yes ,sec 18(6) of cgst act

C.the same amount as mentioned at B above

D. No difference. White means personal use. ITC not available.