For business purposes, I purchased the luxurious car worth over one lakh. At the time, I had claimed GST in accordance with the ATO threshold instead of full GST mentioned in Bills Approx. 10K. After that I decide to sell my car after one year of 90K, what GST will be charged on the sale?
01- 10% of the sale price of the car?
02 - Only GST Threshold Value?
Hiya @ketanpatel,
GST applies to the full sale price of the vehicle. You will also need to pay luxury car tax.
Hiya @ketanpatel,
GST applies to the full sale price of the vehicle. You will also need to pay luxury car tax.
Hi Sir,
Thanks for your reply.
Please note that I am not an Dealer or Manufacturer. I am a operate a Grocery store an buy the car for my personal and business use. Why we can charge the LCT and GST on full amount on sell to other person?
Regards
ketan
Hi @ketanpatel,
You might be able to claim what's called a decreasing adjustment when you sell the car. This is because you used the car for both business and private use. This could help you pay less GST for the tax period.
If you're registered for GST you'll need to charge GST when you sell the car.
Just check the rules for selling a luxury car to see if that applies to you.
Check out the information on our website where it talks about disposing of a motor vehicle.
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