IGST on Used Motor Vehicles
[Notification
No. 9/2018 – Integrated Tax (Rate) 25
January, 2018]
In
exercise of the powers conferred by sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017
(13 of 2017), the Central Government, on being satisfied that it is necessary
in the public interest so to do, on the recommendations of the Council, hereby
exempts the central tax on inter-state supplies of goods, the description of which is 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 corresponding entry in column (2), from
so much tax as specified in Schedule IV of Notification No. 1/2017 - Integrated
Tax (Rate), as is in excess of the
amount calculated at the rate specified
in the corresponding entry 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, Sub- heading 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. |
18% |
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. |
18% |
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. |
18% |
4. |
87 |
All Old and used Vehicles other than
those mentioned from S. No. 1 to S. No.3 |
12% |
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.
[F.No.354/1/2018-TRU]