In such cases, the GST rate and valuation to be applied as applicable from time to time and the concessional rate discussed above cannot be applied for past transactions.Ĭhanges of GST Cess rate over a period of time There could be instances wherein the GST payment could have been missed out. It is important note that depreciation to be considered is under Section 32 of Income tax Act and not under any other laws.
This reduction in rate of tax and its applicability only when there is a profit margin provides relief to regular registered persons who sell old used vehicles occasionally. The ITC on purchase of motor vehicles is generally restricted under Section 17(5) of CGST Act 2017 except when used for certain categories of supplies. The credits under GST or erstwhile laws such as VAT / VAT should not have been claimed earlier. In other cases, the value for GST payment would be difference between the selling price and the purchase price and where such margin is negative, the same to be ignored.Ĭ. Here, it is important to note, that although income tax requires computation of depreciation on the asset block, the rate is required to be applied for the specific motor vehicle, upto the date the supply.ī. Where depreciation claimed under Income tax, margin to be calculated as consideration received less depreciated value of goods as on date of supply. The concessional GST rate is to be applied only on the positive margin subject fulfilment of following conditions:Ī. * – Various types of motor vehicles covered under Chapter 87, which have varied rates. Vehicles other than those mentioned above, including other vehicles under chapter 87 SUVs (including utility vehicles) with more than 1500cc engine capacity (HSN 8703) Petrol Vehicles with more than 1200cc engine capacity & 4000mm length (HSN 8703)ĭiesel Vehicles with more than 1500cc engine capacity & 4000mm length (HSN 8703) The GST rates applicable till 25 th January 2018 and thereafter provided below for easy reference: Category of vehicle (Based on notification no.01/2017 & 08/2018) – CT (R) GST rate on supply of old /used vehicles was same as applicable on supply of new vehicles till 25 th January 2018. On satisfaction of above-mentioned conditions, a registered person dealing in second hand sale of motor vehicle (which is falling under chapter 87) was eligible to claim the abatement of 35% of value of taxable supplies and pay GST on only 65% of value of supply of such motor vehicle. Such abatement till 24 th January taxable value was allowed subject to following conditions:Ī) The supplier of Motor Vehicle is a registered person.ī) Such supplier had purchased the Motor Vehicle prior to 1 st July 2017 and has not availed credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles.
37/2017 Central Tax (Rate) & no.38/2017 – Integrated Tax (Rate) & 07/2017 Compensation cess (Rate) dated, the goods falling under chapter 87 were eligible for supply by discharging GST at 65% of applicable rate. Motor vehicles for the transport of goods Ĭhanges of GST rate on old vehicles over a period of timeįrom 13 th October 2017 to 24 th January 2018, abatement in rate of tax Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702ĭiesel and Petrol Cars, Electric cars, Ambulance, Three wheeled motor vehicles
#CT DEALER CONVEYANCE FEE LAW 2017 DRIVER#
Motor vehicles for the transport of ten or more persons, including the driver General Classification of Motor Vehicle HSN In this article, the GST implications on supply of old/used vehicles including following aspects have been discussed:Ģ) GST rate changes (including abatement) and value Since implementation of GST, there were confusion regarding rate of GST applicable on supply of motor vehicles.
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