GST Council Increases Tax on Pre-Owned Electric Vehicles: Implications for You
2 months ago | 5 Views
The Goods and Services Tax Council, chaired by Union Finance Minister Nirmala Sitharaman and including representatives from all states and Union Territories, has resolved to raise the tax rate on used electric vehicles to 18 percent as of Saturday. The GST Council clarified that this revised tax rate will not impact individual sellers, but will apply to businesses engaged in the sale of used electric vehicles. This increase is significant, as the previous tax rate for used electric vehicles was set at 12 percent.
Following the 55th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced that the panel has opted to elevate the tax rate on all used electric vehicle transactions to 18 percent, aligning it with the tax rate for non-electric vehicles. She further explained that this new tax rate will only apply to the margin, which is defined as the difference between the purchase price and the selling price.
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