On Tuesday, government sources said that the GST Council has not recommended the imposition of any new tax for old and used vehicles in the recent meeting. The experts clarified that the GST Council has simplified the tax rate and recommended unifying and prescribing a single rate of GST on the sale of all old and used vehicles including EVs at 18%.

In the past, the GST on old and used vehicles was levied at different rates. However, the GST Council has now decided to prescribe a single rate of 18% on the sale of all old and used vehicles, including Electric Vehicles (EVs).

If an individual sells an old and used car to another individual (i.e., a private sale), GST will not apply.

For registered persons who have claimed depreciation under Section 32 of the Income Tax Act, 1961, GST will be payable only on the margin. The margin is defined as the difference between the consideration (selling price) received for the vehicle and its depreciated value on the date of sale.