Tag Archives: GST

GST impact on buying, selling used cars; 4 power points explain it all briefly

This type of transaction is similar to the one in the previous case, except that the buyer is in the course or furtherance of business. The second-hand car market in India is largely unorganised and fragmented. Since the transactions happen in different ways, following are the impact of goods and services tax (GST). Individual sells to individual As per Section ... Read More »

Hyundai Absorbs Some GST Cess Hike Costs, Spares Some Variants Of Cars Like New Verna and Creta

Hyundai’s recently launched Verna is yet another runaway hit for the Korean carmaker in India. There were fears that the Verna train might be slowed down by the government’s recent decision to hike cess on the GST charged on most passenger cars and SUVs. At the launch of the new Hyundai Verna, the company had promised a price protection for the first 20,000 customers ... Read More »

Branded used car firms lobbying for lower GST rate

Used cars attract GST rate of 28% or 43% on gross margin depending on the fuel type and engine size, as is the case with new cars. Photo: Ramesh Pathania/Mint Mumbai: Big Boy Toyz, a Gurugram-based firm that specializes in selling used super luxury cars such as Lamborghinis, Ferraris and Bentleys, has put its expansion on hold because of a goods ... Read More »

GST Effect on Used Cars Deals: Buyers Pay More, Sellers Fetch Less

The Indian government has clarified that the Goods and Services Tax (GST) on used cars will be paid only on the margins made by dealers. There will be no incidence of GST on deals between individuals, as it is assumed that the taxes have already been paid at the time of buying a new car and charging GST on a ... Read More »

Additional cess above GST to be removed on used car sales

Earlier Maharashtra had enforced an additional road tax of 2 percent on varying vehicle rates over and above the GST on purchase of new vehicles. This 2 percent cess was to replace the existing octroi duties in the state. NEW DELHI: Good news seems to be in the offing for the used car market. The additional cess of 15 percent that was to be imposed ... Read More »

Additional cess above GST to be removed on used car sales

NEW DELHI: Good news seems to be in the offing for the used car market. The additional cess of 15 percent that was to be imposed on certain categories of second hand vehicles will now not be chargeable, according to a recent notification by the Under-secretary to the Government of India. For instance certain categories of larger vehicles in the above 4 metre range were ... Read More »

‘Higher GST rates will turn buyers away from organised used-car market’

GST does not discriminate between new and used cars Players may not be able to increase prices for fear of losing customers CHENNAI, JULY 14:   High GST rates on used cars have hit margins of organised players in the business. GST does not discriminate between new and used cars as the rates are the same. So pre-owned car dealers in ... Read More »

No GST On Used Car Sold By Individual

The Revenue Department today clarified that sale of old jewellery as well as old vehicles by individuals will not attract any GST as the sale is not for furthering any business.Clarifying on Revenue Secretary Hasmukh Adhia’s comments yesterday, the department issued a press statement saying it was informed at GST Master Class yesterday that “purchase of old gold jewellery by ... Read More »

GST impact on the used car market: Here is how much your new but pre-owned car would now cost

GST or Goods and Services Tax came as a good decision for the Indian automotive industry. A number of segments witnessed a considerable drop in their ex-showroom price which includes the requisite tax. Cars categorised in the SUV segment as well as most other segments have seen a considerable drop in prices. Annoyingly though, hybrids are now more expensive while ... Read More »

GST Rate on Used Cars: Creating An Unintended Challenge for the Automotive Industry

Watching the proceedings in the central hall of the Parliament last night, one couldn’t help but feel the significance of the moment. We saw history in the making, no doubt, and a strong signal to the world that Indian reforms are well on their way. A transformation of this scale and scope is undoubtedly complex and will also be accompanied ... Read More »