GST on Sale and Purchase of old and used Motor Vehicles

Amendment in rates and valuation via notification:Notification No. 8/2018 -Central Tax (Rate) Dated 25/01/2018Notification No. 9/2018 – Integrated Tax (Rate) Dated 25/01/2018Notification No. 1/2018-Compensation Cess (Rate) Dated 25/01/2018

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Amendment in rates and valuation via notification:

Notification No. 8/2018 -Central Tax (Rate) Dated 25/01/2018

Notification No. 9/2018 – Integrated Tax (Rate) Dated 25/01/2018

Notification No. 1/2018-Compensation Cess (Rate) Dated 25/01/2018

Table for rate of GST on sale and purchase of old / used motor Vehicle:

 

Sr No. 

Description of Goods
 
 

Rate
1. 

Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more.

 

 

18%
2. 

 Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm

 

 

18%
3. 

Old and used motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles.

 

(For the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm. and above.)

 

18%

 

4. 

All Old and used Vehicles other than those mentioned from S. No. 1 to S. No.3

 

12%

 

 

Rates specified in the above table would be applicable only if the supplier of such goods has not availed any Input Tax Credit paid on such goods.

Rates under Compensation Cess:

Sr No. 

 Description of Goods
Rate
1All Old and used Motor VehiclesNil

 

Rates specified in the above table would be applicable only if the supplier of such goods has not availed any Input Tax Credit paid on such goods.

Valuation of Old and used Motor Vehicles:

  1. in case of a registered person who has claimed depreciation under section 32 of the Income-Tax Act,1961(43 of 1961) on the said goods, the value that represents the margin of the supplier shall be the difference between the consideration received for supply of such goods and the depreciated value of such goods on the date of supply

Margin= Consideration received – Depreciated value

Where the margin of such supply is negative, it shall be ignored.

  1. in any other case, the value that represents the margin of supplier shall be, the difference between the selling price and the purchase price

Margin= Selling Price – Purchase Price

Where the margin of such supply is negative, it shall be ignored. 

Above valuation would be applicable only if the supplier of such goods has not availed any Input Tax Credit paid on such goods.

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