Chartered Accountant
265 Points
Posted on 03 January 2019
If you are registered under GST.
Case 1: If input tax credit has not been availed on purchase of motor vehicle:
Tax to be discharge on margin (i.e. Sale price – depreciated value as on date of sale), if negative no GST to be paid.
Notification no. 8/2018-Central Tax (Rate) dated 25th January 2018
GST rate on sale of old and used motor vehicles
|
Category
|
Rate
|
|
Old and used, petrol engine >=1200cc and length >=4000mm
|
18%
|
|
Old and used, diesel engine >=1500cc and length >=4000mm
|
18%
|
|
SUV (Length >4000mm, Ground clearance >170mm, engine >1500cc)
|
18%
|
|
Other than above
|
12%
|
Conditions:
- Input tax credit should not have been availed on purchase of such vehicle.
- Sale of such vehicles on or after 25/1/2018. Notification no. 1/2018-Compensation Cess (Rate) dated 25th January 2018.
Notification no. 1/2018-Compensation Cess (Rate) dated 25th January 2018
No compensation cess to be paid on sale of old and used motor vehicles.
Case 2: In case of sale of new motor vehicle or in case of old vehicle where input tax credit has been availed on purchase of such motor vehicle:
GST to be discharged on transaction value (i.e. sale price) at the rate of 28%.
Compensation cess to be discharged based on notification no. 1/2017-Compensation Cess (Rate) dated 28th June 2017 as amended by notification no. 5/2017 Compensation Cess (Rate) dated 11th September 2017.