GST Council Approves Hike in Tax Rate on Sale of Old and Used Cars, Including EVs: Sources

The GST Council is set to approve a hike in the tax rate on the sale of old and used cars, including electric vehicles (EVs). The council's decision to increase the tax rate is expected to impact both the used car market and the growing EV sector. The increase in tax rates could result in higher prices for used cars and EVs, affecting consumers and dealers alike. The decision is part of an ongoing effort to rationalize the GST structure across various sectors, although it has raised concerns among stakeholders who fear the impact on sales. Despite these concerns, the GST Council believes the move is necessary to ensure fair tax treatment across all vehicle categories.