What is the tax code for gain on disposal of motor vehicle that is bought before GST era?
1. A motor vehicle bought before GST era. And it is used for business purpose.
2. It was disposed in 2016 with consideration.
Since it was bought before GST era and no gst incurred, is the gain on disposal subject to 6% GST?
Disposal of passenger car bought before 1/4/2015 subject to GST @ 6% (SR).
Disposal of Passenger car bought after 1/4/2015 is out of scope and not subjet to GST – OS.
If goods under the blocked input tax are later disposed of, they are to be treated as not a supply. In this case, the registered person is not liable to charge and account for GST on such transaction.
(You may refer to Customs website under GST Specific Guide on Supply).