GST will be applicable on Supply of motor vehicles as scrap after its usage in business

GST on scrap

 859 total views

GST will be applicable on Supply of motor vehicles as scrap after its usage in business

AAR: GST will be applicable on Supply of motor vehicles as scrap after its usage in business

Disposal of scrap vehicles for consideration is a sale as per section 7, the expression ‘supply’ covers supply of such as sale or disposal made for a consideration.
The supply has to be in the course or continuance of business with regard to this. The applicant is in the business of having a cash management network involving transportation of cash.
The disposal of the cash carrying vans is a transaction in connection with or incidental to the business of having a cash management network.
When the vehicles become scrap. They had to be dispose of and the proceeds there from to be identify as income for the business which is reflect in the profit and loss account of the business.
Buying new assets and discarding the old unusable assets is an activity in the course of carrying on the business. Therefore, supply of motor vehicles as scrap after its usage is an activity of ‘supply’. In course or furtherance of business and such transaction would attract GST.
GST on scrap

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving