<ul><li>The Indian GST Council has approved an increase in the Goods and Services Tax (GST) on used electric vehicles (EVs). The GST rate has been raised from 12% to 18% to bring stability to the taxation of second-hand vehicles.</li><li>This change aligns used EVs with other vehicles like petrol, diesel, and CNG, which already attract 18% GST. The uniform rate now applies to all used vehicles sold by businesses, including EVs.</li><li>Private sales of used cars remain exempt from the tax, while the GST applies to the margin earned by businesses or dealers.</li><li>The increased GST on resold EVs may have a negative impact on the pre-owned market, potentially reducing the appeal and affordability of used EVs compared to new ones.</li></ul>

18% GST Hike on Used Electric Vehicles: What you need to know

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