However, there was no clarity about GST on used vehicles, the Revenue Departement has clarified that individuals looking to sell their old vehicles will not have to pay GST on the sale as it is not for furthering any business.
The department stated that the said section has to be read in conjunction with another section. And even though the sale of old vehicles by an individual is a consideration, it cannot be said to be as selling old cars is not the business of the said person, and hence does not qualify to be a supply per se.
However, it said that the GST would be applicable if an unregistered business sells four-wheelers or two-wheelers to the registered supplier (who buys or sells in furtherance of his business).
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