The Goods and Services Tax (GST), which was launched in India in July 2017, is an indirect tax applicable to the supply of all the taxable goods and services. The sale of used and old vehicles in India is also considered a taxable supply under GST. Read this article to know the impact of GST rate on used vehicles/cars.
In addition to GST, a CESS tax is also applied to the sale of both old and new vehicles. The rate of cess may vary from 1% to 20% depending on the type of vehicle and sales conditions. However, in its 25th meeting, the GST council had ordered to remove cess from the supply of used vehicles. More on that later.