If you are thinking of selling your old car and buying a new car with that money, then there is worrying news for you, because the government has increased the GST rate on the sale of old vehicles. To put it in simple language, now you will have to spend more money than before to buy a used car. Because the government has increased the GST rate on the sale of old cars, it will affect those who are going to buy old cars. Now they may have to spend more money than before. One more thing to keep in mind is that the effect of this decision will be visible on electric cars also.
In the 55th meeting of the GST Council held in Jaisalmer, the tax rate on old and used vehicles has been increased. Earlier the government used to collect GST on it at the rate of 12 percent. Now according to the new decision, tax will be collected at the rate of 18 percent. The thing to note here is that this rule is not going to apply only to petrol-diesel cars. Rather, the effect of this rule will also be seen on CNG and electric vehicles. This means that even if you buy an old EV, you will have to pay GST at the rate of 18 percent.
Bihar Deputy Chief Minister Samrat Chaudhary, who leads the Group of Ministers on insurance, said another meeting is needed to decide on taxation on insurance policies of group, individual and senior citizens, which is expected to be held in January. Let us inform that in the GST Council meeting, many issues including adjustment in rates for various sectors like insurance, luxury products, aviation turbine fuel (ATF) will be discussed. There have been discussions over the past few months that the council is expected to consider proposals aimed at reducing GST rates on premiums for life and health insurance policies.
