GST on Sale of Old & Used Cars

 

GST on Sale of Old & Used Cars: What You Need to Know

The sale of old and used cars attracts 18% GST, as per the latest guidelines. Here’s what you should know:

Applicability: Both dealers and individuals selling cars are subject to this rate if not under a margin scheme.

Margin Scheme: Tax is levied only on the profit margin, not the entire transaction value, providing relief to dealers.

Compliance: Proper documentation is crucial to avoid penalties or disputes.

The government aims to streamline the taxation process and ensure fair practices in the automobile resale market.