Employer sell Car to Employee which is used by employee. what is GST impact on invoice
Query (Issue) Started By: – gopinath lakshmanan Dated:- 21-8-2017 Last Reply Date:- 17-2-2018 Goods and Services Tax – GST
Got 10 Replies
GST
Dear Sir,
\nMr.X (employee) is working in Y Ltd (employer). Y bought car from Z Ltd under lease which is group company. Now X got car from Y.car price ₹ 8.11 lakh inclusive of VAT 14.5% (Rs95623). Mr.X is leaving the company and there is no surrender option. Mr.x compulsory to buy the car the invoice price ₹ 7.64 and charging GST @ 29% ₹ 2.21 lakh on Fair Market Value. Is liable to pay GST by employee? if yes, what is the applicable rate under GST law. Pls clarify.
\nReply By KASTURI SETHI:
\nThe Reply:
\nGST is applicable only if it is proved that such resale is in the course or furtherance of business. If not, it is out of the definition of 'Supply' in terms of Section 7(1) of CGST Act.
\nReply By Himansu Sekhar:
\nThe Reply:
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n taking any decision, we must know the legal definition of each word , course, business and furtherance.This is my view after thorough analysis. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ght of Definitions of Business and Supply, and you may find that the conclusion shall be same as stated above. Same views are taken by various other High Courts in other similar cases also. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Employer sell Car to Employee which is used by employee. what is GST impact on invoice Query (Issue) Started By: – gopinath lakshmanan Dated:- 21-8-2017 Last Reply Date:- 17-2-2018 Goods and Services Tax – GSTGot 10 RepliesGSTDear Sir, Mr.X (employee) is working in Y Ltd (employer). Y bought car from Z Ltd under lease which … Continue reading “Employer sell Car to Employee which is used by employee. what is GST impact on invoice”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7326","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7326"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7326\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By Himansu Sekhar:
\nThe Reply:
\nSir, selling a car is a separate transaction. If somebody sells a car which has ultimately be sold in the course of business, then no gst will be applicable to the individual. Otherwise an individual is protected under the threshold exemption. Selling from urd to urd also does not attract gst. The used car under a separate transaction sold with consideration. Each transaction with a consideration is a business.
\nReply By Himansu Sekhar:
\nThe Reply:
\nRightly said by srti kalyaniji.
\nReply By Gaurav Bhatnagar:
\nThe Reply:
\nGST should not be applicable on the transactions of sale of Used Cars by a Company who is not in the business of Used Cars. I am also facing the same problem.
\nWhile categorically dealing with the issue of Sales Tax on the sale of Used Cars in case of a Pharmaceutical Company in old Tax reg<\/p>\n
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\nReply By Parveen Kaushik:
\nThe Reply:
\nDear sir
\nI am also facing the same issue. My employer has a leased company as a group company which provides vehicles to employees on 4 years of lease but if employee left comany prior the this period the he\/she needs to pay the rest amount.
\nIn my case, employer is saying that GST is applicable on resale of vehice and the car value is exceeding thE showroom price even.
\nI want to know the final result of your case.
\nWas GST applicable to your case or not?
\nPlease reply
\nRegards
\nParveen Kaushik
\nReply By Venkatanarayanan K:
\nThe Reply:
\nDear sir, I am facing the same issue. Is there any update post the latest GST council meeting held on 19th Nov 2017 or any one challenged against basis any legality?
\nRegards Venkat
\nReply By Reji Jose:
\nThe Reply:
\nSir any up<\/p>\n
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