High GST rate: Cloud of uncertainty looms over used car industry

The cheer brought to the carmakers by the implementation of the nationwide tax structure is about to vanish. The government can anytime increase the cess by 10 per cent taking the tax on SUVs and luxury cars to as high as 53 per cent.

While the carmakers have been fighting their own battle after the proposed increase in cess, for the used car industry the sky was grey from day one. The used car market had clocked a healthy growth in recent years and at 3.87 million vehicles a year, it has outperformed the new car market of three million