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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART II, SECTION
3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 8/2018 -Central Tax (Rate)

New Delhi, the 25
th
January, 2018

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central
Goods and Services Tax Act, 2017 (12 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 -Central 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.
[F.No.354/1/2018-TRU]

(Ruchi Bisht)
Under Secretary to the Government of India