Question19: The book value of car is Rs. 10 L while we are selling it at 3.5 L. No vat credit was taken at the time of purchase. Now whether GST will be chargeable on sale of car and on what amount. We are registered under GST.

Answer: Tax is to be paid on car irrespective of the fact whether you had taken any ITC or not. The transaction value is the value to be taxed in case of unrelated person where price is the sole consideration as per section 15 otherwise Rule 27 to Rule 35 relating to valuation will apply. The goods are sold at heavy loss is not going to affect any way until unless the preventive officer establish other wise (Reply dt. 11/12/2017)