Do you need to pay 18% GST on 'loss margin' of EV resale? Explained

Quick Summary:

This sparked confusion as it appeared that people would be taxed on reselling a car despite the resale representing a loss.

Using an example, she emphasised that if a car was bought for Rs 12 lakh and resold as used car for Rs 9 lakh, the price difference would be taxed.

This aligns the tax structure for used EVs with that of petrol and diesel vehicles with larger engine capacities, which are already taxed at 18 per cent.

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Article Details

Category: BusinessFinance

Markets: India

Topics: Used EV resale tax Second-hand EV taxation Used EV dealer tax GST on EV resale loss Taxation of used vehicles GST on used electric vehicle sale GST on used EVs Used electric vehicle market GST on resold cars GST Council 55th meeting GST on loss of EV resale value GST hike on EVs Margin value GST GST exemption Motor Vehicle Accident Fund Nirmala Sitharaman GST clarification 18% GST on electric vehicles GST Council decision

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-12-23 @ 17:27:55 (6 hours ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 604 words

Reading Time: 4 minutes read

Sentences: 26 lines

Sentence Length: 24 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 24596157

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