GUWAHATI: The Indian government introduced a uniform Goods and Services Tax (GST) rate of 18% on used cars, as announced by Finance Minister Nirmala Sitharaman during the 55th GST Council meeting.
However, this new tax will only apply to registered businesses dealing in used cars and not to individuals selling their vehicles privately. For instance, if a dealer buys a car for ₹12 lakh and sells it for ₹9 lakh, the loss incurred means no GST will be applicable. Conversely, if a car purchased for ₹5 lakh is sold for ₹6 lakh, GST will be charged on the ₹1 lakh profit margin.
Watch the video to understand how this taxation works.
