The GST rates for second-hand car transactions will be the same as the new cars of the same make — 29 per cent for small cars or 43 per cent for all the other cars. The sale of second-hand cars on the vendor platforms will attract goods and services tax (GST) only on the margins made by the dealer, revenue secretary Hasmukh Adhia clarified on Tuesday, removing apprehensions that the tax will apply on the entire sale value. The revenue secretary also said sale of used cars between individuals or by individual to a firm won’t be treated as taxable transaction under GST. Currently, used cars attract VAT at 0.5-14 per cent in across various states and the levy is on the resale value. GST on the sale price of used cars would have amounted to double taxation (as excise duty and VAT are already paid) and jacked up the prices.

Source: Indian Express June 27, 2017 20:37 UTC