- The Central Board of Indirect Taxes & Customs (CBIC) has implemented an 18% GST on the sale margin of old and used electric vehicles (EVs) and smaller petrol and diesel cars, effective immediately, while individuals selling such vehicles to other individuals are exempt from GST.
- Additionally, 5-star hotels can levy a 5% GST on restaurant services located within their premises for room tariffs of ₹7,500 or more, but this is only applicable if they do not claim Input Tax Credit (ITC), with the rule taking effect from April 1.
- The new GST rules state that only registered dealers selling old vehicles are liable for GST, calculated based on the margin (the difference between the selling price and the depreciated purchase price), with no GST payable if the margin is negative.
Source A2ztaxcorp
