GST Council increase taxes on used, old EV by companies: Opposition slams

The Union Finance Minister headed, the Goods and Services Tax Council has agreed to apply an 18% per cent tax on the margin value of used electric vehicles sold by companies, The Hindu Reported. 

Following the 55th GST Council meeting, Nirmala Sitharaman announced that the panel had decided to increase the tax rate from 12 per cent to 18 per cent on all used EV sales, similar to non-electric vehicle sales. The tax will only be applied to the value that represents margin, or the difference between the purchase price and selling price (or depreciated value if depreciation is claimed) by businesses.

However, Individuals who purchase used vehicles will continue to be exempt from GST.

Opposition leaders reacted sharply to the decision, with Samajwadi Party chairman Akhilesh Yadav and Aam Aadmi Party national convenor Arvind Kejriwal accusing the Centre of serving the "rich" class.

“Purchasing a car is a big deal for an ordinary middle-class family, but the central government is crushing their dreams by increasing taxes even on old cars. The BJP government at the centre is working only for the rich and industrialists. It is only providing inflation, taxes and pain to the common man and the poor of the country,” Citing Arvind Kejriwal's Tweet, The Hindu reported.

GST on used car

With the exception of petrol vehicles with an engine capacity of 1200 cc or more and a length of 4000 mm or more, diesel vehicles with an engine capacity of 1500 cc or more and a length of 4000 mm or more, and SUVs, which are subject to 18% GST, all old and used automobiles, including EVs, are now subject to 12% GST.