GST on Car Sale and Car Repair Services

By | January 12, 2018
(Last Updated On: January 12, 2018)

We are authorised CAR dealer and our showroom is located in Surat, [Gujarat]. We sale car and provide car repair service. Our customers belong to Daman & Silvassa (Daman & Silvassa are Union Territories).

1.Place of Supply for Sale of Car if customer address is of Daman & Silvassa ?

2.Place of Supply for Repairs of Car if customer address is of Daman & Silvassa ?

1.Place of Supply for Sale of Car if customer address is of Daman & Silvassa ?

Place of supply of goods other than supply of goods imported into, or exported from India.

Section 10(1) of IGST Act 2017 :  The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,—

(a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient;

(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;

There fore if deliver of car is made Surat (company showroom) then you have to charge CGST and Gujarat GST , but if delivery is made at Daman & Silvassa  as per agreement then you have to Charge IGST

Place of Supply for Repairs of Car if customer address is of Daman & Silvassa ?

Place of supply of services where location of supplier and recipient is in India.

Section 12(2) of IGST Act 2017 :  The place of supply of services, except the services specified in sub-sections (3) to (14),

(amade to a registered person shall be the location of such person;

(bmade to any person other than a registered person shall be,—

(i) the location of the recipient where the address on record exists; and

(ii) the location of the supplier of services in other cases.

Therefore if the customer is registered and is in other state charge IGST.

If the customer address is on records is in Daman & Silvassa charge IGST , if the customer address not available charge CGST and Gujarat GST

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One thought on “GST on Car Sale and Car Repair Services

  1. P Murahari Kanuparthi

    Sir, we have a quarry regarding price escalation. we have cleared the goods to Transmission Corporation of Andhra Pradesh & Telangana Govts. on Jan – Feb 2011 as per Contract / PO price. After Clearence of goods they approved Price revision on Dec 2015 according that we have paid differential duty voluntarily without interest. Now the C.E.Dept. asking interest on differential duty @ 18%. At present the applicable rate of interest is @ 15% as per revised Notification No. 15/2016 CE (N.T).

    Sir, the Department also enquired and found that assessee had not received any additional amount on account of price escalation up to September 2015.

    We are quoted M/s Hitkari Fibers Ltd Vs C.C.E, Delhi, M/s Steel Authority of India Vs C.C.E, Raipur and M/s Kotsons Pvt. Ltd Vs C.C.E, Jaipur cases and asked to hold the proceedings of interest under Sec. 11AA after having the final verdict from the Apex Court.

    The case is pending with Appeals Stage and PH is next week. kindly help us and suggest any other evidence of case laws regarding this will be highly appreciated.

    Reply

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