NOTIFICATION NO.8/2018- UNION TERRITORY TAX (RATE), DATED 25-1-2018

SECTION 8 OF THE UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – POWER TO GRANT EXEMPTION FROM TAX – EXEMPTION OF CENTRAL TAX ON INTER-STATE SUPPLIES OF GOODS FROM SO MUCH TAX AS SPECIFIED IN SCHEDULE IV OF NOTIFICATION NO.1/2017- UNION TERRITORY TAX (RATE), AS IS IN EXCESS OF AMOUNT CALCULATED AT SPECIFIED RATE ON VALUE THAT REPRESENTS MARGIN OF SUPPLIER, ON SUPPLY OF SUCH GOODS

NOTIFICATION NO.8/2018- UNION TERRITORY TAX (RATE)DATED 25-1-2018

In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the central tax on intra-state supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as are given in corresponding entry in column (2), from so much tax as specified in Schedule IV of Notification No. 1/2017 – Union Territory Tax (Rate), as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4), of the said Table, on the value that represent margin of the supplier, on supply of such goods.

TABLE

S. No. Chapter, Heading, Sub-heading or Tariff item Description of Goods Rate
(1) (2) (3) (4)
1. 8703 Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity of 1200 cc or more and of length of 4000 mm or more.

Explanation.— For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

9%
2. 8703 Old and used, diesel driven motor vehicles of engine capacity of 1500 cc or more and of length of 4000 mm

Explanation.— For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

9%
3. 8703 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.

9%
4. 87 All Old and used Vehicles other than those mentioned from S. No. 1 to S.No.3 6%

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.

2. This notification shall not 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 as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods

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