GST may boost online market for used cars

As per the GST rules released last week, second-hand cars will attract GST only on transaction value

Online pre-owned vehicle dealers believe that the Goods and Services Tax (GST), once in place, will accelerate the growth of the online market in this space.

“Currently, registration into other states is an entry barrier in terms of extra cost. GST will remove these complexities and will accelerate the adoption of online as far as used vehicles are concerned,” online automobile transactional marketplace Droom founder and CEO Sandeep Aggarwal said.

According to him, GST will also bring a better equilibrium of price because the demand and supply can be matched with a lesser friction and better efficiency.

As per the GST rules released