Question22: A LLP firm is in business of Job work of auto parts. The Firm has purchased a Car Fortuner in the FY 2014-15 for Rs 28 Lakh and capitalized in the books. Now the firm want to sold that car for Rs. 17 Lakh.
Is GST is applicable on sale of car' if applicable at which rate.' Is any Input is available'

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. Section 17 (5) restrict availability of ITC In case of car the credit can be availed only in case when the car is used for providing outward supply of renting etc of it. It seems that you are not providing services of that kind so credit is not available to you (Reply dt. 18/12/2017)