18% GST will be levied on selling old car, decision in council meeting

New Delhi: If you are thinking of selling your old car and buying a new car with that money, then there is news of concern for you, because the government has increased the GST rate on the sale of old cars. In simple language, now more money will have to be spent to buy a used car.

Because the government has increased the GST rate on the sale of old cars, those who are going to buy old cars may now have to spend more money than before. One more thing to keep in mind is that the effect of this decision is also going to be seen on electric cars. In the 55th meeting of the GST Council held in Jaisalmer, the tax rate on old and used vehicles has been increased.

Earlier the government used to collect GST on it at the rate of 12 percent. Now according to the new decision, tax will be collected at the rate of 18 percent. The point to note here is that this rule is not going to be applicable only on petrol-diesel cars. Rather, the effect of this rule will also be seen on CNG and electric vehicles. That is, if you buy an old EV, then you will have to pay GST at the rate of 18 percent.

Bihar Deputy Chief Minister Samrat Chaudhary, who heads the ministerial group on insurance, said that another meeting is needed to decide on taxation on group, individual and senior citizens’ insurance policies, which is expected to be held in January.

Let us tell you that the GST Council meeting will discuss many issues including adjustments in rates for various sectors like insurance, luxury products, aviation turbine fuel (ATF). It has been discussed in the last few months that the council is expected to consider proposals aimed at reducing GST rates on premiums of life and health insurance policies.