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Notification No. 08/2018 - Central Tax (Rate) dated 25-01-2018 [Supplies of Old and used motor vehicles partly exempt]

Notification No. 08/2018-Central Tax (Rate) dt. 25-01-2018

In exercise of the powers conferred by section 11(1) of the CGST ACT, 2017

Supplies of Old and used motor vehicles partly exempted from CGST with conditions

Central Government, on being satisfied that it is necessary in the public interest so to do ,

exempts the central tax on intra-state supplies of goods, specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as are given in column (2),

from so much tax as specified in Schedule IV of Notification No. 1/2017 -Central Tax (Rate), as is in excess of the amount calculated at the rate specified in column (4), of the said Table, on the value that represent margin of the supplier, on supply of such goods.

 

Table

S. No

Chapter, Heading, Subheading or Tariff item

Description of Goods

Rate

(1)

(2)

(3)

(4)

1.

8703

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.

Explanation. - For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

9%

2.

8703

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

Explanation. - For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

9%

3.

8703

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

Explanation. - 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.

9%

4.

87

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

6%

Explanation –For the purposes of this notification, -

(i) 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, and where the margin of such supply is negative, it shall be ignored; and

(ii) in any other case, the value that represents the margin of supplier shall be, the difference between the selling price and the purchase price and where such margin is negative, it shall be ignored.

2. This notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.

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