Gujarat Offers Up To 50% Motor Vehicle Tax Concession For Scrapping Eligible Old Vehicles, Check March 2027 Deadline

Gandhinagar, Oct 1: The Gujarat government has announced up to 50 per cent concession in Motor Vehicle Tax for owners who scrap eligible old vehicles and purchase new ones, with the benefit linked to the Certificate of Deposit (COD) issued following authorised scrapping.

The concession will be available at the time of registration of a new vehicle against a COD issued for the scrapping of an eligible old vehicle.

The benefit will apply to CODs issued up to March 31, 2027, according to a recent notification issued by the Ports and Transport Department.

Vehicles eligible for concession

The provision covers transport and non-transport vehicles manufactured under Bharat Stage-I (BS-I) and earlier mass emission standards.

It also covers all medium and heavy goods motor vehicles and medium and heavy passenger motor vehicles manufactured under BS-II standards.

COD required for tax benefit

Under the new provision, an owner who has scrapped an eligible vehicle through an authorised facility will receive a COD. The document can then be produced during the registration of a new vehicle to claim the applicable concession in Motor Vehicle Tax.

The government has retained the existing method for calculating Motor Vehicle Tax, with the concession being provided as per the prescribed rules.

The decision, therefore, links the authorised scrapping of an old vehicle with a tax benefit on the registration of its replacement.

Incentive for vehicle replacement

The measure covers vehicles with older emission standards and is intended to provide a financial incentive for their scrapping and replacement.

Owners of eligible old commercial vehicles, in particular, can avail themselves of the concession when registering a new vehicle after completing the scrapping process and obtaining the required COD.

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March 2027 deadline applies

Only CODs issued on or before March 31, 2027, will qualify for the concession under the new provision. Vehicle owners seeking the benefit will therefore have to complete the eligible scrapping process and obtain the COD within the specified period.

The department has also clarified that the same scrapped vehicle cannot be used to claim the concession more than once.

If a tax concession has already been availed against a COD issued for a particular scrapped vehicle, a further concession cannot be claimed under the provision on the basis of that vehicle.

(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)