Dealership body appeals to govt to keep GST rate at 0.5-1% on used cars
The GST rate being applied on used cars is at the highest slab and incurs tax of 29-43%, which will push sellers to go to the unorganised market instead of the organised market.
Key highlights:
- FADA requested the government to keep GST rate on used cars at a standard 0.5% or 1%
- The original vehicle had already suffered the payment of the tax at the highest slab of GST, says FADA
- Under GST it will be 29-43% of margin depending on type of vehicle
The Federation of Automobile Dealers Association (FADA) on Tuesday requested the government to keep the goods and service tax (GST) rate on used cars at a standard 0.5% or 1% of the sale price of the vehicle and not margin.
It said that that since the original vehicle had already suffered the payment of the tax at the highest slab of GST, a standard GST rate on pre-owned or used cars should be applied.
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