In India, the Goods and Services Tax (GST) framework outlines specific tax rates for the sale of both used and new cars. As per the 55th meeting of the GST Council held on 21st December, 2024, notable changes are introduced by the honourable Finance Minister, particularly relating to the sale of pre-owned vehicles.
The 55th GST Council was held under the Chairpersonship of Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman in Jaisalmer, Rajasthan. It was attended by various other ministers comprising Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh and Telangana, and other senior officers of Ministry of Finance and States/UTs.
New Cars GST Rate
The GST rates for new cars vary based on the specifications:
- Small Cars (Engine capacity upto 1200 CC): 28% GST and 1% Compensation Cess.
- Mid-Size Cars (Engine capacity 1200-1500 CC): 28% GST and 3% Compensation Cess.
- Mid-Size Cars (Engine capacity 1200-1500 CC, length more than 4000 mm): 28% GST and 17% Compensation Cess.
- Luxury Cars (Engine capacity Above 1500 CC): 28% GST and 20% Compensation Cess.
- Sports Utility Vehicles (SUVs) (Engine capacity Above 1500 CC, length more than 4000 mm): 28% GST and 22% Compensation Cess.
- Electric Vehicles: 5% GST
Used Cars GST Rate
- The GST Rate for used cars has been increased from 12% to 18% for all used and pre-owned vehicles including electric vehicles.
- All used vehicles comprising petrol and diesel fuel vehicles, both with 1200cc or more engine capacity and with length upto 4000 mm or more, and also on SUVs as well.
Note: GST is applicable only on the margin value of the supplier, i,e., the difference between Purchase price and Selling price and not on the entire value of the vehicle.
Also, this clause of the announcement is not applicable for unregistered persons.
- The adjustment aims to simplify the tax calculations for used vehicles and to streamline the rates considering the broader market practices.
- Honourable Finance Minister Smt. Nirmala Sitharaman clarified the entire scenario by using an example that if a car is purchased for Rs 12 lakh and was sold for Rs 9 lakh, the difference (margin of Rs. 3 lakh) will be taxed at the GST rate of 18%.
- She further clarified that no GST will be levied if an individual or unregistered person sells old and used cars.
- Prior to the proposed announcement, the GST on second hand EVs was applicable on the complete sale value of the vehicle.
For further details on the 55th GST council meeting and its key decisions, refer to the official press release by the Ministry of Finance.
The Biggest Tax Debt of Every Soul
Taxation is an inescapable reality today. Though there are taxes like GST that are known to us, discreet taxes form a significant part of our lives that we are oblivious to.
Also Read: 55th GST Council Meeting: A Game-Changer in India’s Tax Landscape
Jagatguru Tatvdarshi Sant Rampal Ji Maharaj educates us about the unknown debt every human incurs. When we utilise any facility on Earth, even if it’s as basic as eating food and taking shelter, the 5 governors or managers of this planet Earth – Devi Durga, Brahma, Vishnu, Shiva and Satan (Kaal Brahm), are held responsible for extracting our virtues in exchange of worldly benefits, making us spiritually paralysed. Kabir Saheb has stated in His verses that:
Brahma Vishnu Maheshwar Maya, aur Dharamray Kahiye |
In Paancho Mil Parpanch Banaya, Vaani Humari Lahiye ||
In Paancho Mil Jeev Atkaye, Jugan Jugan Hum Aan Chutaye |
Bandi Chhod Hai Humara Naam, Ajar Amar hai Asthir Thaam ||
Not knowing the correct way to pay off these tax debts is the prime reason we are unable to navigate out of this dungeon. The most commonly peddled mantras of these deities are ‘Hare Rama, Hare Krishna’, ‘Om Namah Shivay’, ‘Om Gam Ganapataye Namah’, etc. Ironically, none of these mantras are validated by our foundational ancient scriptures.
The profound taxes of these deities, accumulated over innumerable consecutive births, can be repaid only by chanting the authentic mantras of each of these deities. Currently, Sant Rampal Ji Maharaj is the sole authority, the singular Tatvdarshi Sant (Complete Guru) to grant these mantras to devotees.
The authentic mantras of these deities, imparted by Sant Rampal Ji Maharaj, find solid validation in our scriptures and are effective only when granted by a Tatvdarshi Sant. Uncover the path to repay these spiritual taxes to begin your journey to complete salvation by understanding the profound spiritual teachings of Sant Rampal Ji Maharaj on www.jagatgururampalji.org.
