Question 7: XYZ Ltd. (Manufacturer) is selling the company`s car (Honda - Accord). What is the rate of GST and rate of Compensation CESS payable on it as per the latest amendment'

Answer Notification No. 8/2018 -Central Tax (Rate) dt. 25th January, 2018, specified tax rate at concessional rate on sale of of old and used Motor vehicles 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

According to above notifications, applicable rate on selling of old and used (Honda -accord) car on the capacity of engine and length is 18% (9%+9%) and compensation cess is Nil.

For valuation and conditions for applicability of above provisions please refer the above said Notifications .(REPLY dt. 31/1/2018)