Wed Dec 25 21:19:58 UTC 2024: ## GST Council Recommends 18% Tax on Used Vehicle Sales

**New Delhi, [Date]** – The Goods and Services Tax (GST) Council has recommended raising the GST rate on the sale of used vehicles from 12% to 18%. This increase applies to all old and used vehicles, including electric vehicles (EVs), except those already taxed at 18%. The higher rate will specifically target larger petrol vehicles (1200cc engine or more, 4000mm length or more), larger diesel vehicles (1500cc engine or more, 4000mm length or more), and SUVs.

Finance Minister Nirmala Sitharaman clarified that the 18% GST will only be levied on the profit margin – the difference between the buying and selling price, accounting for depreciation if claimed. The tax will not apply to the vehicle’s original value. Furthermore, the new rate will not apply to transactions involving unregistered sellers. The recommendation now awaits formal approval.

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