Government Exempts Central Tax on Certain Used Vehicles: Understanding the Key Points

Exemption Purpose: Government exempts central tax on specified inter-state supplies of used vehicles. Recommendations: Exemption based on recommendations of the Council and necessity in public interest.

Description of Goods: Includes used petrol, diesel, and other vehicles with specific engine capacities and dimensions.

Tax Rate Reduction: Tax reduction from Schedule IV of Notification No. 1/2017 - Integrated Tax (Rate). Margin of Supplier Calculation: Margin calculated based on depreciation for registered persons; otherwise, it's the difference between selling and purchase prices.

Exclusion Criteria: Exemption doesn't apply if supplier has claimed certain input tax credits. Implementation Authority: Signed by Ruchi Bisht, Under Secretary to the Government of India.