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A registered person will have to pay GST on sale of old and used vehicle only if the seller has earned a margin, which is the selling price is higher than the depreciation adjusted cost price of the vehicle, sources said. The GST Council in its meeting last week decided to prescribe a single rate of 18 per cent on sale of all old and used vehicles including EVs, earlier leviable at different rates. If an individual sells old and used car to another individual, GST would not be applicable. Sources said where the registered person has claimed depreciation under Section 32 of the Income Tax Act 1961, GST is payable only on the value representing the margin of the supplier, that is the difference between consideration received for the supply of such goods and the depreciated value of such goods on the date of supply. "Where such margin is negative, no GST is payable," a source said. For example, if a registered person is selling an old and used vehicle to any person at Rs 10 lakh, whe
Self-drive car-sharing platform Zoomcar on Friday said it has launched its first fulfilment centre in Chennai and plans to add more than 100 such centres this year. As part of the expansion, the company said, it is also looking to add 1,000 new cars on the platform by December this year. Operated by a third-party operator, such facilities manage end-to-end operations of car listings on behalf of the hosts who want to earn by sharing their cars but find it challenging to do it themselves, Zoomcar said. The company said leveraging its over decade-old experience in the car sharing business, it helps these fulfilment centres by providing services to guests. Hosts pay a nominal fee to get an array of services from these centres like managing their car, regular cleanliness, safe and secure parking space at top locations in hot spots, delivery and pick up of cars to customers and service centres, among others. Cars managed through the fulfillment center are tagged as "Assured by Zoomcar"
Indian used car market is expected to touch the USD 100 billion-mark in the next ten years on the back of rising disposable incomes and a growing middle class, according to CARS24 Co-Founder and CEO Vikram Chopra. As per the findings of the Gurugram-based online used car marketplace, there are changes in market dynamics with customers opting for frequent upgrades when it comes to cars. "According to our internal study, the anticipated growth of the Indian used car market is set to occur at a 15 per cent CAGR, increasing from USD 25 billion in 2023 to USD 100 billion by 2034," Chopra told PTI in an interaction. The growth trajectory is propelled by various factors unique to the Indian market, including urbanisation and a growing middle class, which is changing consumer preferences and boosting the demand for affordable mobility solutions, he added. Chopra noted that when CARS24 began its journey eight years ago, the used car market size stood at around USD 10-15 billion. "I think,
Maruti Suzuki India on Wednesday said its pre-owned car business has crossed 50 lakh-unit sales milestone since inception. The company had introduced its pre-owned car brand, Maruti Suzuki True Value in 2001. "With the successful completion of 22 years in the industry, India's most trusted pre-owned car brand, Maruti Suzuki True Value has established itself as the preferred choice of 50 lakh happy customers," Maruti Suzuki India Ltd (MSIL) Senior Executive Officer, Marketing & Sales, Shashank Srivastava said in a statement. True Value is currently present in more than 281 cities and operates from over 560 outlets pan-India.
The Ministry of Road Transport and Highways (MoRTH) has introduced authorization certificates for the dealers of registered vehicles to identify the authenticity of a dealer, a move that will promote ease of doing business and transparency. MoRTH in a notification issued on December 22, has amended chapter III of the Central Motor Vehicle Rules, 1989 to build a comprehensive regulatory ecosystem for the pre-owned car market. According to the notification, the procedure for intimation of delivery of vehicle between the registered owner and the dealer has been detailed, and the powers and responsibilities of a dealer in possession of registered vehicles have also been clarified. The pre-owned car market in India has been gradually gaining ground. In recent years, the advent of online marketplaces, which are involved in buying and selling of pre-owned vehicles has further given a boost to this market. In the current ecosystem, many issues were being faced viz. during transfer of vehic
Automaker Kia India on Tuesday said it has commenced certified pre-owned business in the country with a plan to have 30 sales outlets by the end of the year. The company said its certified pre-owned car business 'Kia CPO' intends to provide a new age experience to customers, in line with new car buying experience, that will allow them to sell, buy or exchange pre-owned cars, backed by ownership transfers and customised finance options. "With Kia CPO, we want to rewrite the rules of the game for the pre-owned car market. Currently, Indian customers have limited access to certified and verified information when it comes to the pre-owned car segment and we intend to change this notion with our entry into the business," Kia India Chief Sales Officer Myung-sik Sohn said in a statement. The company's proactive approach of starting CPO business at such an early stage of its existence in the country will ensure that all systems and processes are in place even before the first lot of product
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