Quick Summary
In a significant move, the Goods and Services Tax (GST) rate will be increased from 12% to 18% on the sale of all old and used vehicles, including Electric Vehicles (EVs), with certain exceptions. The new GST framework will apply to the sale of petrol vehicles with an engine capacity of 1200 cc or more and a length of 4000 mm or more, diesel vehicles with an engine capacity of 1500 cc or more and a length of 4000 mm, as well as SUVs. It's important to note that GST will only be applicable to
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FAQ :
The GST rate for the sale of most old and used vehicles has been increased from 12% to 18%.
Yes, the new GST rate applies to the sale of old and used electric vehicles as well, with certain exceptions.
GST is applicable only to the supplier's margin, which is the difference between the purchase price and the selling price. If depreciation has been claimed, GST is calculated on the depreciated value.
The new framework applies to petrol vehicles with engines of 1200 cc or more and 4000 mm length or more, diesel vehicles with engines of 1500 cc or more and 4000 mm length, and SUVs. Specific exceptions may apply, and further clarification is anticipated.
The GST will only be applicable for registered persons involved in the transaction, meaning registered sellers.
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