- The GST Council has set a unified 18% GST rate for all old and used vehicles including electric vehicles
- This rate simplifies the previous varied tax rates applied to these sales
- GST is payable by registered businesses dealing in old and used vehicles
- Individuals selling vehicles to other individuals are not subject to GST
- GST calculation for registered businesses depends on the margin between the sale price and the purchase or depreciated value
- If a vehicle is sold at a price lower than its purchase or depreciated value resulting in a negative margin, no GST is payable
- Example provided where a vehicle purchased at 20 lakh and sold at 10 lakh after 8 lakh depreciation shows no GST due as the margin is negative
- Another example with a vehicle purchased at 20 lakh and sold at 22 lakh results in GST being payable on the 2 lakh margin at 18%
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
