The Gujarat Authority of Advance Ruling (AAR) poses with Arun Richard and Atul Mehta who specified that 18% GST is subjected to pay on the car sale by the company post to using its business purposes.
The petitioner, M/s. Dishman Carbogen Amcis Limited has brought a new car for Rs 80 lakhs dated 16-02-2018 for use in its business. The petitioner would not claim the GST ITC during the purchase because it is blocked beneath section Section 17(5) of the CGST Act, 2017. Depreciation was availed under the Income Tax Act, 1961.
The petitioner stated that he wants to sell the used car for the consideration of Rs 55 lakh. The petitioner wants to sell the car and impose the GST according to Notification 8/2018 CT (R) dated 25-01-2018.
The petitioner seeks an advance ruling on the rate of GST subjected on the new car brought by the company that is sold post to using it for business purposes.
AAR revealed that the used car comes beneath the compliance of Serial Number 3 to Notification 8/2018-CT (R) dated 25-1-18.
According to Serial Number 3 to GST Notification 8/2018-CT (R) on 25-1-18, 18% GST is subjected to be paid on the old and used motor vehicles with an engine capacity of more than 1500 cc, popularly called Sports Utility Vehicles (SUVs), including utility vehicles.
