Respected Sir/Mam, a GST registered person sells his tempo which is used by him in his business as scrap for Rs. 20,000/-. Now what tax rate he would charge on sale of the tempo, whether the rate which is applicable on new tempo or the rate of the scrap which is provided under tax rate schedule.
Whether the vehicles are sold as scrap and unusable OR sold as old vehicles need to be confirmed from any document. It is generally seen that there is surrender of the RTO Registration Book when the vehicles are disposed off as scrap. Hence, it needs to be ascertained as to whether the vehicles are sold as scrap. For vehicles sold as scrap which does not amount to sale of a vehicle as such, the rate of the material sold as scrap would apply.
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