gst on sale of used car, Goods and Services Tax - GST

[Madhavan iyengar]

A Company wants to sell a used motor vehicle to its employee

the cost when it acquired the vehicle was rs. 400000/- in 2014 no cenvat was taken at that time now it wants to sell at rs. 150000

treatment under gst in light of notification no rate 08/2018 dated 25/01/2018

whether employer / employee being related party valuation rules would become applicable

Posts / Replies

[KASTURI SETHI]

In view of the situation explained by you and, especially, in view of Notification No.08/2018-CT (Rate) dated 25.1.18, Rule 28 of CGST Rules, 2017 does not come into picture.

[Ganeshan Kalyani]

Generally company supplies the used car to its employee on the book value as on the date of sale. The book value is as after reducing depreciation as per companies act. And when you work out written down value as per income tax the wdv will be less. So there will be profit and GST is applicable on the margin.

[Ramesh Kothari]

As I understand from GST Act If any value left in book or not it's immaterial the price at which sold GST attract