Notification and relevant changes made by CBEC for GST applicability on sale of Used Motor car purchased before July’17 has been noted down.
In nut shell there is reduction of 35% from the total Tax+Cess subject to following conditions :
|1.||The Motor Vehicles was purchased by the lesser prior to 1st July, 2017 and supplied on lease before 1st July, 2017|
i. The supplier of Motor Vehicle is a registered person.
ii. Such supplier had purchased the Motor Vehicle prior to 1st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles
GST Rates on sale of used Motor Cars (Purchased before 1 July 2017)
|Type of Car||Specifications||GST Rate||Cess||Effective Rate|
|Small size petrol, LPG or CNG cars||Engine capacity not exceeding 1200cc and length not exceeding 4000mm||18%||1%||19%|
|Small size diesel cars||Engine capacity not exceeding 1500cc and length not exceeding 4000mm||18%||2%||20%|
|Mid size cars||Engine capacity not exceeding 1500cc other than above||18%||11%||29%|
|Large size cars||Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified below||18%||13%||31%|
|SUV’s including utility vehicles||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.