DOES GST/REVERSE CHARGE APPLY ON SALE OF USED CARS?? SPECIALLY REVERSE CHARGE???

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SCOPE OF GST:  
All form of supply of goods or services or both
as sale,transfer,exchange,rental, etc
made or agreed to be made(i.e. agreement had done by taking advance from the party)
for a CONSIDERATION
by a PERSON
in course of FURTHERANCE OF BUSINESS


CASE 1- BOTH BUYER AND SELLER ARE UNREGISTERED 

  • No GST will be applied: As per scope, there is no furtherance of the business
            Exp: if Seller is a common man(not having GST Number)
            Buyer is Dealer of Second hand goods
            If he buys the Car- THEN it is for the furtherance of the business
            in that case the TURNOVER of the dealer comes to play.

          I) IF DEALER IS NOT REGISTERED-TURNOVER BELOW 20 LACS
                Here Common man sells his car to unregistered dealer- Sale by common man is not for the                  furtherance is HIS i.e common man's business. Hence this Doesn't falls within the scope.
                Hence NO GST.                
             
CASE 2:     SELLER - NOT REGISTERD                  BUYER - REGISTERED
 
 
            IF DEALER IS REGISTERED- TURNOVER ABOVE 20 LACS
                Sale by common man to Registered Dealer- Now some people will say as seller is                              unregistered and buyer is registered so reverse charge Under Section 9(4) of CGST                      act will apply. BUT HERE I DIFFER  AS WE DISCUSS                          ABOVE THAT SALE BY COMMON MAN TO                              DEALER IS NOT WITHIN THE SCOPE OF SUPPLY                    OF GST. HENCE NO GST WILL BE APPLIED AND                    NO GST UNDER REVERSE CHARGE SHUD APPLY.          

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