Sahil Jaiswal
Quick Summary
The 55th GST Council Meeting, held on December 21, 2024, introduced significant changes to the Goods and Services Tax (GST) structure concerning vehicle sales in India. Key Highlights from the GST Council Meeting Standardized GST on Used Vehicles The GST rate on all used vehicles, includi
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FAQ :
The GST rate on all used vehicles, including electric vehicles (EVs), has been increased to 18%.
GST is applied to the difference between the selling price and the purchase price of the vehicle (the margin). If the margin is negative, no GST is levied.
No, private sales between unregistered individuals are exempt from GST.
Consumers buying used vehicles from registered dealers will likely see higher prices due to the 18% GST. They may opt for direct individual transactions to avoid this tax.
New EVs continue to attract a lower GST rate of 5%.
Auto dealers are concerned about the increased tax burden on used vehicles potentially impacting affordability and their profit margins.
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