How much GST should my company charge for selling a used car and what price? Is there any credit available on the excise and vat paid when the car was bought?

Hey there,

In case of the supply of capital goods or plant and machinery on which ITC has been taken, the registered person shall pay an amount equal to  the ITC taken in the said capital goods or plant and machinery reduced by 5 % per quarter or part thereof from the date of invoice 

or

the tax in transaction value of such capital goods, whichever is higher.

However, in the case of refractory bricks, moulds, dies, Jigs and fixtures when these are supplied as scrap, the person can pay tax on the transaction value.

Further, if you have any eligible input credit under previous tax laws (VAT or Service Tax or Excise ) avail the same under transition provisions,.

 FYI: Input tax credit under Motor vehicles and Conveyance is covered under Blocked credit under Section 17(5) except in some cases.

             The input credit under earlier loss shall be utilized before 31st Dec 2017

Happy reading !!!

Team GST Mithra