GST on used car sales increased from 12% to 18%

The sale and purchase of used vehicles by individuals will continue to be exempted from GST.

The GST Council has decided to increase the tax on the sale of used cars, including electric vehicles, from 12% to 18%.

The GST will be applicable only on the value that represents the margin of the supplier, which is the difference between the purchase price and selling price (depreciated value if depreciation is claimed). The sale and purchase of used vehicles by individuals will continue to be exempted from GST.

Currently, all used vehicles, including EVs, attract 12% GST. Petrol vehicles with an engine capacity of 1,200cc or more and a length of 4,000 mm or more, diesel vehicles with an engine capacity of 1,500cc or more and a length of 4,000 mm, and SUVs attract 18% GST.

In the recent meeting chaired by Finance Minister Nirmala Sitharaman, the GST Council decided to charge a uniform rate of 18% for all vehicles.

Source: ET Auto