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Query Answer
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Sir our client is in business of Transportation. Our Clint has purchased Tanker (Vehicle) in year 2008 during that time credit on capital goods was not allowed.

Now my client wants to sale the tanker, so kindly advice us on the same regarding GST on it. 

WDV of the Tanker is Rs.4,58,900/- now he want to sale the tanker @ Rs.7,89,500/-

What is the treatment in GST? On Which amount he needs to Charge the GST. Please advice as early as possible.

On which amount he needs to pay GST..?

Reply

As per Notification no. 8/2018 (Central tax rate) a registered person who has claimed depreciation under section 32 of the Income-Tax Act,1961(43 of 1961) on the said old and used vehicle, the taxable value shall be the difference between the consideration received for supply of such vehicle and the depreciated value of such goods on the date of supply, and where the margin of such supply is negative, it shall be ignored.

The above mentioned notification is apply only to the old and used vehicles mentioned therein, and not on every used asset.

Provided that the supplier of such goods has not availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such vehicles.

As mentioned in the query, there was no input tax credit at the time of purchase of such vehicle, taxable value will be Rs. 3,30,600 (789500-458900).

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