Sale of Old Car as scrap
Query (Issue) Started By: – Kavita Sharma Dated:- 8-11-2017 Last Reply Date:- 16-11-2017 Goods and Services Tax – GST
Got 6 Replies
GST
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.
\nRegards
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nMadam,
\nIt 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.
\nReply By Ganeshan Kalyani:
\nT<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 9;scrap'). Thus the character of the goods is changed. Here 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Sale of Old Car as scrap Query (Issue) Started By: – Kavita Sharma Dated:- 8-11-2017 Last Reply Date:- 16-11-2017 Goods and Services Tax – GSTGot 6 RepliesGSTIf 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 … Continue reading “Sale of Old Car as scrap”<\/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-8607","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8607","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=8607"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8607\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nIn view of above, old & used car (declared scrap) cannot attract rate of tax under HSN meant for a car.
\nHere 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.
\nReply By Ganeshan<\/p>\n
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