Ministry of Finance issued Notification No. 04/2025 – Central Tax (Rate) on January 16, 2025, amending Notification No. 08/2018-Central Tax (Rate). The amendment involves an increase in the GST rate from 12% to 18% on the sale of all old and used vehicles, including electric vehicles (EVs), except for those already specified at 18% GST rate. This change applies to all transactions involving these vehicles and aims to streamline the GST framework for used vehicle sales. The new rate will be effective immediately upon issuance of this notification, ensuring a swift transition. The notification, made under Section 11(1) of the Central Goods and Services Tax Act, 2017, reflects the government’s intent to revise taxation rates based on the economic environment and public interest.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 04/2025-Central Tax (Rate) | Dated: 16th January, 2025
G.S.R. 59(E).— In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2018-Central Tax (Rate), dated the 25th January, 2018, published in the Gazette of India, Extraordinary, Part II, section 3,sub-section (i) vide number G.S.R. 82(E), dated the 25th January, 2018, namely :-
In the said notification, in the TABLE, against S. No. 4, in column (4), for the entry “6%”, the entry “9%” shall be substituted.
- This notification shall come into force with immediate effect.
[F. No. 190354/2/2025-TRU]
AMREETA TITUS, Dy. Secy.
Note:- The principal notification No. 8/2018-Central Tax (Rate), dated the 25th January, 2018, was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 82(E), dated the 25th January, 2018.