GST ON USED CARS

As per Notification No. 8/2018, CT ( RATE ) dated 25th January 2018 :

1). Old and Used, PETROL, Liquified Petroleum Gas ( LPG ), or Compressed Natural Gas ( CNG ), driven motor vehicles of engine capacity of 1200 cc or more and of Length 4000 mm :

GST RATE : 18% [ 9% CGST + 9% SGST ].

CHAPTER : 8703

2). Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm.

GST RATE : 18% [ 9% CGST + 9% SGST ].

CHAPTER : 8703

3). 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.

GST RATE : 18% [ 9% CGST + 9% SGST ].

CHAPTER : 8703

4). All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3.

GST RATE : 12% [ 6% CGST + 6% SGST ].

CHAPTER : 87

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.