Question 8: We are registered assessee in GST , having car in FIXED ASSESTS and availing depreciation on this car,

Now we want to exchange this car with another car, our WDV is of Rs.2,00,000/- but car company giving us exchange benefit of Rs.1,91,000/-

it means negative value of Rs.9000/- coming whether we have to pay GST on such exchange price or not '

if payable at what rate and under what notification'

Answer As per section 7 CGST Act Sale barter leasing all transaction are covered under the term supply

Therefore your new car is subjected to tax at full 200000 and you should pay tax on old car but you have relief by virtue of exemption notification no 8/2018

According to Explanation (i) of Notification No. 8/2018 -Central Tax (Rate) dt. 25.01.2018 , you are not liable for GST , where the margin between sale value and depreciated value of car on the date of supply is Negative.

Copy of Notification No. 8/2018 -Central Tax (Rate) dt. 25.01.2018 is enclosed here with. .(REPLY dt. 2/2/2018)