Exchange of Car, Goods and Services Tax - GST

[Ethirajan Parthasarathy]

A GST registered person exchanges his old car for new car.

The car Company credits him with

1) value of old car

2) Exchange Bonus and

3) Loyalty bonus. Item No. 1 is subject to GST as per notification No.8/2018 dated 25^th January 2018.

Are loyalty Bonus and exchange bonus are also subject to GST.

Posts / Replies

[HIREGANGE& ASSOCIATES]

The exchange value fixed for the old car in excess of the book value shall be liable for GST @18% or 12% as the case may be as per notification No.8/2018 dated 25^th January 2018.

Loyalty Bonus and Exchange bonus is the reduction in the sale price of the new car (in the form of discount) - No GST attracts on the same.

Regards

Sudhir V. S

[email protected]