GST on Sale of Used Vehicle Explained | Section 7 CGST & Notification 8/2018 🚗

Описание: Does GST apply when you sell an old or used vehicle? 🚗
Many people assume GST depends only on whether ITC was claimed or depreciation was taken — but that’s not the full picture.

In this video, we break down GST applicability on sale of used vehicles by first understanding Section 7 of the CGST Act, 2017, which defines what constitutes a supply under GST.

If a vehicle was used for business purposes and later sold for consideration, the transaction is generally treated as a GST-taxable supply, regardless of whether ITC was claimed.

We then explain Notification No. 8/2018 – Central Tax (Rate), which provides relief through the margin scheme for old and used vehicles:

✔ When no ITC was availed, GST is payable only on the margin
✔ If the margin is negative, GST may be nil
✔ When ITC was availed, the margin scheme does not apply, and GST is payable on the entire sale value (generally 40% + applicable cess)

🎯 Key takeaway:
Business use and ITC eligibility are two separate tests under GST.
Always examine Section 7 first, and only then check whether Notification 8/2018 applies.

This video is useful for:
• Business owners
• Chartered Accountants
• Tax consultants
• Anyone selling a business vehicle

📌 Watch till the end to avoid common GST mistakes while selling used vehicles.

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