Goods and Services Tax – Started By: – Kavita Sharma – Dated:- 8-11-2017 Last Replied Date:- 16-11-2017 – If a firm sells its 15 years old Wagonr car (not in running condition) as scrap, what will be the applicable GST rate on such sale.Regards – Reply By Rajagopalan Ranganathan – The Reply = Madam, It depends upon by which materials the Wagon car is made of. If it is of Iron then then such scrap is classifiable under heading 7204 and attract 9% CGST vide Sl. No. 199 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended. If it is any other material then refer to the same notification and find out rate of tax. – Reply By Ganeshan Kalyani – The Reply = In my view it should be classified under HSN 8703 attra
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re we cannot call this vehicle a car now. It is a scrap. Any vehicle is made of iron, copper, brass, aluminium, steel etc., so junked car is left with these kinds of scrap. All these kinds of scrap fall under different HSNs i.e. 72,73,74,76 under different sub-heading nos. and attract different rates of tax under GST Tariff Act. In view of above, old & used car (declared scrap) cannot attract rate of tax under HSN meant for a car. Here it is worthwhile to mention that the phrase, scrap generated in the course of manufacture of excisable goods' is a matter of bye gone era and hence not relevant under GST because GST is on supply of goods and services. – Reply By Ganeshan Kalyani – The Reply = Do we need to dismantle the car and then
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