The 55th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan, today. 

The council has recommended to increase the GST rate from 12% to 18 % on sale of all old and used vehicles, including EVs other than those specified at 18%.

Sale of old and used petrol vehicles of engine capacity of 1200 cc or more & of length of 4000 mm or more; diesel vehicles of engine capacity of 1500 cc or more & of length of 4000 mm and SUVs.

It is worthwhile to note that GST is applicable only on the Value that represents Margin of the Supplier, that is, the difference between the Purchase price and Selling price (depreciated value if depreciation is claimed) and not on the value of the vehicle. Also, it is not applicable in case of unregistered persons..

In other words, no GST is payable on used/second hand EV vehicles when sold by individuals.  But 18% GST on margin earned when used/second hand EV vehicles purchased from Companies or used car dealers.

Read More: 55th GST Council Meet: No GST On ‘Penal Charges’ Levied By Banks And NBFCs From Borrowers For Non-Compliance With Loan Terms