GST on Sale of Used Cars — 2024-25 Update at a Glance
Whether you're a dealer, a business, or just selling your personal ride — here's how GST applies under the latest norms:
Private Sale = No GST
Registered Dealer or Business = GST @18% on profit margin only
If margin is zero or negative = No GST
How’s Margin Calculated?
No depreciation claimed ➝ Sale Price - Purchase Price
Depreciation claimed (Sec 32 IT Act) ➝ Sale Price - Depreciated Value
GST applies only if there’s a gain — a welcome simplification by the GST Council (Dec 2024) to avoid confusion over multiple rates.
Proper recordkeeping is key to compliance. So if you're in the resale business, sharpen those books!