Question11: Please clarify rate of GST on sale of old vehicle procured before 01/07/2017. Please clarify is notification number 37/2017-Central tax (Rate ) relates with same query ,if yes ,please clarify Rate of GST to be charged on sale of Old Vehicle.

Answer: According to the provisions of Section 7(1) of CGST Act, 2017 all forms of supply of goods or services or both such as sale , transfer, barter, exchange, licence, rental, lease or disposal etc. made for a consideration by a person in furtherance of business would be covered under the term 'Supply' and would be leviable to tax under the GST regime at the appropriate rate applicable according to relevant HSN Code, irrespective of the fact whether credit has been availed or not under earlier of existing regime. The applicable rate of tax on sale of old vehicle under GST is 28% plus 15% cess. Notification No. 37/2017-CT (R) dated 13.10.2017 is not relevant when vehicle is being out rightly sold. Said Notification becomes applicable if the vehicle is being given on lease. (Reply dt. 30/11/2017)