GST on old used cars only when sale price higher than depreciated value

Registered individuals have to pay GST on the sale of used vehicles only if the selling price exceeds the depreciated cost price. The GST rate is set at 18%, applied only to the margin. Depreciation claims under the Income Tax Act affect GST payable. Negative margins incur no GST. A registered person will have to pay GST on sale of old and used vehicle only if the seller has earned a margin, which…