Government Notification on Integrated Tax for Motor Vehicles

Integrated tax rates specified for inter-State supplies of motor vehicles. Applicable rate: 65% of integrated tax under Notification No. 1/2017-Integrated Tax (Rate) dated June 28, 2017. Notification applies until July 1, 2020.

Explanation: Definitions of "Tariff item," "sub-heading," "heading," and "Chapter" as per Customs Tariff Act, 1975. Rules for interpretation of the Customs Tariff Act applicable.

Annexure: Conditions for application of the notification outlined. Motor vehicles purchased by the lessor before July 1, 2017, and leased out before the same date.

Supplier of motor vehicle must be a registered person and should not have availed input tax credit on such vehicles purchased before July 1, 2017. Issued by Ruchi Bisht, Under Secretary to Government of India.