GST On Used Cars Will Increase To 18% From 12%: 55th GST Council Meeting

The 55th GST Council meeting, held under the leadership of the country's finance minister, Nirmala Sitharaman, came to an end on Saturday, December 21. The minister, along with her associates, is expected to hold a press conference at 18:00 IST.

As per reports, The GST Council made the decision to raise the tax rate from 12 per cent to 18 per cent.

This GST affects the sale of used and outdated automobiles, including electric vehicles (EVs).

This affects used cars across the board, from petrol to diesel and electric vehicles.

Previously, the tax levied on electric vehicles or EVs stood at 12 per cent, and new EVs had a lower rate of 5 per cent.

The government intends to increase revenue streams through this taxation system. This could adversely affect a lot of middle-class and lower middle class car owners in the country.

In addition, the decisions on the most talked-about issues of insurance premiums (health and life), that is, lowering the GST rate on insurance premiums, have been deferred due to a lack of consensus among the GST council members.