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Whats gst rate on used motor car ?

Sagar N. Pawar (GST Practice) (56 Points)

31 December 2018

I am registered ( regular) dealer Used motor car , whats GST rate apllicable sales on motor car ?.

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pritesh (CA Final student) (7101 Points)
Replied 31 December 2018

As per Notification 8/2018 CT (r)

Vehicle of Vat Regime Sold in GST Regime : if itc not claim then GST is applicable on Profit Margin (Sale-Puchase )
.if claim thn gst applicable on transaction value

Vehicle Purchased & Sold in GST Regime :
If ITC claim , then GST is on transaction Value
If ITC is not claim , then GST is on Profit Margin (Sale - Purchase)

GST Rate 12 % & 18% is applicable as per CC engine of vehicle mentioned in Notification.

More then 1500 CC , leanth exceeding 4000 MM, GST is 18%

Else ,.. 12%

So , calculate your Gst payable on sale of vehicle as per above said notification

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Sagar N. Pawar (GST Practice) (56 Points)
Replied 31 December 2018

Originally posted by : pritesh
	thanks

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 31 December 2018

87. All old and used motorvehicles Explanation: Nothing contained in this entry shall 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 credit as defined in CENVAT Credit Rules, 2004, or the input tax credit of Value Added Tax or any other taxes paid on such vehicles.

Rate: Nil

https://cbec-gst.gov.in/gst-goods-services-rates.H T M L

CA Abhilash N (Chartered Accountant) (265 Points)
Replied 31 December 2018

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 – Purchase price), 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

No compensation cess to be paid on sale of old and used motor vehicles.

Case 2: If input tax credit has been availed on purchase of 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.

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