With reference to Notification no 179/ No 8/2018 Central tax dated 25/1/2018 ,what will be the treatment in case of Motor vehicle which was purchased during VAT regime on which Input Tax Credit under CENVAT Credit Rules 2004 was not availed and sold in GST regime. Kindly clarify in this regard.

Reply- As per notification no. 08/2018 (central tax rate) dated 25.01.2018, a registered person who has claimed depreciation under section 32 of the Income-Tax Act,1961 on said Old vehicle, 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.

This notification is not applicable 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 vehicles.

Thus, GST will be applicable on difference between selling price and written down value (as per income tax act). Rate of tax will be as per above mentioned notification.