18% GST on Used Cars: Rules, Impact, and How It Affects You

GST on used cars is now fixed at 18%! Find out how it affects sellers and buyers, with Finance Minister Nirmala Sitharaman explaining the rules. Simplified for you!

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The GST Council introduced 18% GST on selling old cars, applicable only to the profit margin—making tax calculations more transparent and fair for registered sellers.

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No GST if an individual sells a used car to another individual. The rule applies only to GST-registered persons selling vehicles under specific conditions.

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GST is charged on the profit margin. Example: Buy a car for ₹12 lakh, sell for ₹9 lakh—since the margin is negative, no GST is applicable.

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For GST-registered sellers, the tax is calculated on the margin between the selling price and the car's depreciated value, ensuring fairness for second-hand transactions.

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Sellers can breathe easy—GST isn’t on the total selling price but the margin. Buyers gain clarity on costs, making second-hand car purchases smoother.

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Selling used cars as a GST-registered seller? Ensure compliance with ease. Apply for GST registration today and stay ahead in the game!

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18% GST on Used Cars: Rules, Impact, and How It Affects You

18% GST on Used Cars: Rules, Impact, and How It Affects You

GST on used cars is now fixed at 18%! Find out how it affects sellers and buyers, with Finance Minister Nirmala Sitharaman explaining the rules. Simplified for you!

GST on used cars is now fixed at 18%! Find out how it affects sellers and buyers, with Finance Minister Nirmala Sitharaman explaining the rules. Simplified for you!

The GST Council introduced 18% GST on selling old cars, applicable only to the profit margin—making tax calculations more transparent and fair for registered sellers.

The GST Council introduced 18% GST on selling old cars, applicable only to the profit margin—making tax calculations more transparent and fair for registered sellers.

No GST if an individual sells a used car to another individual. The rule applies only to GST-registered persons selling vehicles under specific conditions.

No GST if an individual sells a used car to another individual. The rule applies only to GST-registered persons selling vehicles under specific conditions.

GST is charged on the profit margin. Example: Buy a car for ₹12 lakh, sell for ₹9 lakh—since the margin is negative, no GST is applicable.

GST is charged on the profit margin. Example: Buy a car for ₹12 lakh, sell for ₹9 lakh—since the margin is negative, no GST is applicable.

For GST-registered sellers, the tax is calculated on the margin between the selling price and the car's depreciated value, ensuring fairness for second-hand transactions.

For GST-registered sellers, the tax is calculated on the margin between the selling price and the car's depreciated value, ensuring fairness for second-hand transactions.

Sellers can breathe easy—GST isn’t on the total selling price but the margin. Buyers gain clarity on costs, making second-hand car purchases smoother.

Selling used cars as a GST-registered seller? Ensure compliance with ease. Apply for GST registration today and stay ahead in the game!

Apply Now

Apply Now