What is the impact of GST on Sale/Scrap of used cars by a company which is not in the business of selling used cars?

What is the impact of GST on sale/ scrap of used cars by a company which is not in the business of selling used cars? Since margin concept would not work in the above case, on what price should GST be charged while disposing of the car by a company?

Asked on July 25, 2017 in Automobile.
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4 Answer(s)

I think Company can not charge GST because GST is exempted for both seller and buyer. Only GST will apply on used car dealer on a margin basis.

Answered on July 25, 2017.
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I think if car is a capital asset for the company then whatever credit is remaining that will have to be paid or GST has to be paid on the transaction amount, whichever is higher.

Answered on July 25, 2017.
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Otherwise treat the supply as a normal supply and charge GST as applicable on the new car.

Answered on July 25, 2017.
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You have to charge GST on the supply of the second-hand goods because you are registered and must have taken ITC of the same even if it is not in the course or furtherance of business.

Answered on July 25, 2017.
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Your Answer

Gen GST