While an individual seller need not pay 18 per cent GST when selling his or her car, there are several grey areas which remain.

As the country was busy figuring out the increased tax on caramelised popcorn, the 18 per cent Goods and Services Tax (GST) on selling old vehicles has grabbed eyeballs, with many discussing it how it would affect them.

The 18 per cent GST would not be applicable if an individual sells old and used car to another individual. If a GST registered person has claimed depreciation, the tax is payable only on the value representing the margin.

The GST Council has decided to impose an 18% GST on the sale of old and used vehicles, including EVs, but only if the selling price exceeds the depreciated value, a PTI report said. GST is applicable only on the margin,

Here's an overview of the GST Council's recommendation and the tax that will need to pay when selling used cars.

The GST on the margin of sale for used vehicles, including electric ones, has been revised to 18%. GST is payable only on the margin between purchase price and sale price. For depreciated vehicles, GST applies only if the sale price exceeds the depreciated value.

The recent decision by the GST Council of a uniform 18% rate was aimed at harmonising GST applicable on sale of all used vehicles, including EVs.