Ministry of Finance, through Notification No. 04/2025-Integrated Tax (Rate) issued on January 16, 2025, has amended the Integrated Goods and Services Tax (IGST) rate on the sale of old and used vehicles, including electric vehicles (EVs). The notification raises the IGST rate from 12% to 18% on these transactions, with the exception of vehicles already specified at the 18% GST rate. This change is intended to align with broader fiscal policies and is implemented immediately. The revised tax rate is part of an amendment to the earlier notification No. 9/2018-Integrated Tax (Rate) dated January 25, 2018. The new tax rate will now apply to all sales of used vehicles and EVs, ensuring uniform taxation on these goods across the market. The notification, issued under Section 5(1) of the Integrated Goods and Services Tax Act, 2017, reflects the government’s adjustment of tax rates to align with current market conditions and public interest.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 04/2025-Intergrated Tax (Rate) | Dated: 16th January, 2025
G.S.R. 61(E).— In exercise of the powers conferred by sub-section (1) of section 5 of the Integrated Goods and Services Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendation 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. 9/2018-Integrated 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. 86(E), dated the 25th January, 2018, namely :-
In the said notification, in the TABLE, against S. No. 4, in column (4), for the entry “12%”, the entry “18%” shall be substituted.
2. This notification shall come into force with immediate effect.
[F. No. 190354/2/2025-TRU]
AMREETA TITUS, Dy. Secy.
Note:- The principal notification No. 9/2018-Integrated 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. 86(E), dated the 25th January, 2018.
