GST on Used Car Sale : GST is not applicable on the sale of a used car by an individual in India. This exemption applies regardless of whether the buyer is another individual or a business. The sale of a used car by an individual is not considered a “supply” under GST law, thus exempting it from GST regulations.
Last week decided
The GST Council in its meeting last week decided to prescribe a single rate of 18 per cent on sale of all old and used vehicles including EVs, earlier leviable at different rates. If an individual sells old and used car to another individual, GST would not be applicable.
An enlisted individual should pay GST marked down of old and pre-owned car provided that the vender has procured an edge, which is the selling cost is higher than the deterioration changed cost of the vehicle, sources said. The GST Committee in its gathering last week chose to endorse a solitary pace of 18% discounted of all old and pre-owned cars including EVs, prior leviable at various rates.
Sources said where the enlisted individual has guaranteed deterioration under Area 32 of the Personal Assessment Act 1961, GST is payable just on the worth addressing the edge of the provider, that is the contrast between thought got for the stockpile of such merchandise and the devalued worth of such products on the date of supply. “Where such margin is negative, no GST is payable,” a source said.