[BeantownThinker]

Originally Posted by Turbanator

If that does not happen, I am afraid, you will need to bear 18 % GST on sale value.

Isn't this ridiculous? I end up paying taxes 3 times. First the tax on income. Then the tax on the deemed perk. Then the GST.

Where is the reform?

[quickdraw]

Guys, I am a bit confused right now about the GST implication on my recent purchase.

When I bought my Mini from BMW Premium Selection they had rolled back their initial price and offered a new price which was around a lakh or so higher citing GST on used cars. Is there a possibility that I've ended up paying extra for this car? The car was purchased in August 2017.

[Turbanator]

GST on Used Cars to be charged @ 9 % on Margin of Depreciated value & Sales Price only

As per this notification, am I understanding correctly?

[Santoshbhat]

Originally Posted by Turbanator

GST on Used Cars to be charged @ 9 % on Margin of Depreciated value & Sales Price only

As per this notification, am I understanding correctly?

What horrible wordings these people use. It took me 15 mins to decode

It says they have exempted tax, as mentioned in schedule IV (which is 14%), in excess of 9% or 6%, as the case may be on the margin of the supplier. If the assessee has claimed depreciation on the vehicle, then margin will be sale value less depreciated value. When did they say earlier that 14% on margin was to be applied?

Basically this notification exempts the 5% over and above the 9% which they want us to apply now. The most important hidden meaning that one can derive is that they wanted corporate or other business entities who have motor cars in their balance sheet to charge CGST @ 14% on the "margin" up until this notification came out.

All in all it is good news for assessees and the used car industry. Net result is GST on used motor cars appearing in our balance sheets will be @ 18% on sale value less written down value. Phew, we can breathe a sigh of relief!

[Turbanator]

Net result is GST on used motor cars appearing in our balance sheets will be @ 18% on sale value less written down value

So it is not 9 %? Does it mean, say Original Purchase price is 10 lac and the depreciated cost is 7 Lac after a Year and if we sell the car 7 lac or low then no GST is payable and if it's more than 7 Lac say 8 Lac then we pay GST on difference i.e 1 Lac @ 18 %?

BTW, how do we calculate depreciation on cars

[Santoshbhat]

Originally Posted by Turbanator

So it is not 9 %? Does it mean, say Original Purchase price is 10 lac and the depreciated cost is 7 Lac after a Year and if we sell the car 7 lac or low then no GST is payable and if it's more than 7 Lac say 8 Lac then we pay GST on difference i.e 1 Lac @ 18 %?

BTW, how do we calculate depreciation on cars

GST has 2 components Central and state. For each item two notifications are passed. THis one is for the central part or the CGST. Respective states then follow suit and pass the notification for the SGST part. So when they say 9%, they mean only CGST. 9% SGST will also apply.

Yes, if you sell at or below depreciated value, then no GST will apply.

Depreciation rates are prescribed in the Income Tax Act. On non commercial motor vehicles it is currently 15% p.a.

[shashi63]

So if a company has a vehicle and the company is not in the business of buying or selling cars and sells its vehicle to a unregistered individual no GST is applicable. Correct? Can someone with better knowledge than me confirm on this?

[fordfreak]

I'm still a bit confused here, so would appreciate a bit of help from fellow members.

My car (a Dec. 2011 VW Passat 2.0 TDi DSG) is registered in the name of my company (I am not a car dealer), but used by me personally. Will GST be applicable at the time of selling it to an individual buyer?

[Turbanator]

Originally Posted by fordfreak

I'm still a bit confused here, so would appreciate a bit of help from fellow members.

My car (a Dec. 2011 VW Passat 2.0 TDi DSG) is registered in the name of my company (I am not a car dealer), but used by me personally. Will GST be applicable at the time of selling it to an individual buyer?

Look at the post 33, unless you are selling the car at higher rates then your buying prices, nothing will be payable.

[kedarwalke]

Originally Posted by Turbanator

So it is not 9 %? Does it mean, say Original Purchase price is 10 lac and the depreciated cost is 7 Lac after a Year and if we sell the car 7 lac or low then no GST is payable and if it's more than 7 Lac say 8 Lac then we pay GST on difference i.e 1 Lac @ 18 %?

BTW, how do we calculate depreciation on cars

So if depreciated value of my car is 20Lacs and I sell the car to individual/corporate for 22 lacs,so am I liable to pay 18%GST on 2lacs only?
Can someone please confirm on above as we are selling one of our company registered car but our CA says that we have to pay GST on full 22Lacs

[Turbanator]

Originally Posted by kedarwalke

So if depreciated value of my car is 20Lacs and I sell the car to individual/corporate for 22 lacs,so am I liable to pay 18%GST on 2lacs only?
Can someone please confirm on above as we are selling one of our company registered car but our CA says that we have to pay GST on full 22Lacs

Your CA is totally wrong. Have a look at above notification
https://www.team-bhp.com/forum/india...ml#post4364249 (Used car GST rates slashed from 29 - 54.7% to 12 & 18%)

Even if your value is more, unless you trade into Cars, its actually very difficult to raise GST invoice or at least that's what I understand. So maybe sell the car after 31st March or give discount so that GST effect is Zero.