Question 13:my client sold used honda
city car which was used for business purpose in last five years. the car was
sold in july,2017, how much gst & cess is to be payable on sale of this old car
'
Answer Notification No. 09/2018 -Integrated Tax (Rate) dt. 25th January, 2018,
reduce rate from 28% to 18%/12% on old and used motor vehicles on the basis of
engine capacity and length of motor vehicles under HSN 8703 /87 and Vide
Notification No. 1/2018-Compensation Cess (Rate) dt. 25th January, 2018 ,
compensation cess on all old and used motor vehicles shall be NIL w.e.f
25.01.2018
For valuation and conditions for applicability of above provisions please refer
the above said Notifications enclosed here with.
Whereas in your case in July 2017 or earlier of 25.01.2018 their is no such
notification. Thus the applicable rate of tax and compensation cess on sale of
old vehicle is same as applicable on to relevant HSN Code under GST i.e 28% plus
15% cess. .(REPLY dt. 14/2/2018)