Query: If an individual buys a car for personal use and after a year sells it to a car dealer. Whether this transaction will be a supply in terms of Model GST Law ?
Answer: No, this transaction is not be a supply because supply is not made by the individual in the course or furtherance of business . GST is to be levied on supply of Goods /Services for a consideration by a person in the course or furtherance of business,. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.
Relevant Extract of Section 3 0f Revised Model GST Law Meaning and scope of supply
(1) Supply includes—
(a) all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business,