If you are planning to sell your old car and buy a new car with that money, there is an alarming news for you, as the government has increased the GST rate on the sale of old vehicles. Simply put, now you have to spend more money than ever before to buy a used car. As the government has increased the GST rate on the sale of used cars, it will affect people who are going to buy used cars. Now they may have to spend more money than before. Another thing to keep in mind is that the impact of this decision will also be seen on electric cars.
Now you have to pay 18 percent tax
The 55th GST Council meeting held in Jaisalmer has increased the tax rate on old and used vehicles. Earlier, the government used to levy GST on it at the rate of 12 percent. Now according to the new decision, tax will be charged at the rate of 18 percent. The thing to note here is that this rule is not applicable only to petrol-diesel cars. Instead, the effect of this rule will be seen on CNG and electric vehicles as well. This means that if you buy an old EV, you will have to pay GST at the rate of 18 percent.
This meeting may also be held in January
Bihar Deputy Chief Minister Samrat Chaudhary, who heads the Group of Ministers on Insurance, said another meeting is needed to decide on taxation on insurance policies of group, individual and senior citizens, which is expected to be held in January. Let us tell you that many issues will be discussed in the GST Council meeting, including adjustments in rates of various sectors like insurance, luxury products, aviation turbine fuel (ATF). There have been discussions for the past few months that the Council is expected to consider proposals aimed at reducing the GST rate on premiums for life and health insurance policies.
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