Karnataka Amends GST Rules: Exempts State Tax on Used Vehicles Over 1200cc. Conditions Apply for Input Tax Credit.

The Government of Karnataka has issued a notification amending Notification No. 01/2017 under the Karnataka Goods and Services Tax Act, 2017. Effective from January 25, 2018, this amendment exempts state tax on intra-state supplies of specified old and used motor vehicles. The exemption applies to vehicles such as petrol, LPG, or CNG-driven vehicles with engine capacities of 1200 cc or more, diesel vehicles with engine capacities of 1500 cc or more, SUVs, and other vehicles, with tax rates ranging from 6% to 9%. The exemption does not apply if the supplier availed input tax credit under specified conditions.

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