MUMBAI: Many companies which purchase assets such as cars, sell it after it has been used by either their executives or in the car-pool for the benefit of employees. 

Dishman Carbogen Amcis Limited which had purchased an SUV for 80 lakhs, later wished to sell it for Rs. 55 lakh. The written down value as per its books of accounts was Rs. 47 lakh. No input tax credit had been availed by it, against the purchase of the car. 

In a crisply worded ruling, the Authority for Advance Rulings (Gujarat) held that GST at 18% shall be charged on the difference between the consideration received on its sale and the depreciated value (depreciation under the Income-tax Act will be considered for this purpose). 

This ruling is similar to that given recently by the Maharashtra Advance Rulings Authority in the case of sale of second-hand paintings. Here GST was also held leviable on the differential price.