GST Council may increase tax on old and used vehicles, including EVs, to 18%

The GST Council’s Fitment Committee has proposed raising the GST rate on old and used electric vehicles from 12% to 18%, aligning with the existing tax structure for larger vehicles and SUVs. This potential increase could make second-hand EVs less appealing to buyers and lead to higher overall taxation on second-hand vehicle sales, potentially impacting the resale market. The council is set to discuss this recommendation at their upcoming meeting in December in Jaisalmer, Rajasthan.

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