Notification No 04/2025-CTR
The Government has issued Notification No 02/2025-CTR dated 16-01-2025 for Increasing rate on Margin for sale of old and used vehicle including EVs except for the vehicles that are already taxed @ 18%.
Earlier GST rate of 18% on margin for following sale of old and used vehicles.
Type of Vehicle | Engine Capacity | Length |
Old and used LPG & CNG Vehicle | 1200 CC or More | 4000 mm or more |
Old and used diesel Vehicle | 1500 CC or more | 4000 mm or More |
Old and used diesel Vehicle | Exceeding 1500 CC | 4000 mm or more and Ground clearance 170mm or more |
What is Margin Value?
Margin= Selling Price – Purchase Price (for non depriciated assets)
Margin= Selling Price – Depriciated value (If depreciation has been claimed under income tax)
On this Margin GST is applicable in case of sale of old and used vehicles.
In short. the category of vehicles other than above were taxed at the rate of 6% which is now changed to 9%. it means on the margin value for selling of all the mentioned above old and used vehicles or any other old and used vehicles are taxed at the rate of 9% from 16-01-2025.