Amendment in CGST Act for Exemption on Intra-State Supply of Used Vehicles

The Central Government, under section 11 of the CGST Act, introduces an exemption on intra-state supply of specified used vehicles. This exemption applies to goods listed in the table with designated tariff items and descriptions.

Margin of the supplier, defined as the difference between selling price and purchase price, determines the exempted tax amount. Depreciated value is considered for registered persons claiming depreciation under section 32 of the Income-Tax Act, 1961.

Input tax credit availed by the supplier on such goods disqualifies from this exemption. Ruchi Bisht, Under Secretary to the Government of India, issues the notification.

The amendment aims to ease tax burdens on intra-state transactions of used vehicles, encouraging trade and commerce. Effective immediately, this notification enhances clarity and compliance in taxation regulations.