In a move to bolster transparency and ease of business in the second-hand vehicle market, the Government has announced key measures through new notifications aimed at improving the sale and purchase of registered vehicles via dealers. The notification, G.S.R. 901(E), issued on December 22, 2022, outlines regulations that empower intermediaries and vehicle dealers while introducing safeguards to prevent fraudulent activities.
These rules are part of a broader initiative to ensure a seamless and trustworthy environment for consumers and businesses in the used vehicle sector. They include provisions for the scrapping of old vehicles, offering citizens significant incentives to encourage the exchange of older models for new ones.
Notable among these incentives are two key G.S.R. notifications from October 2021:
- Fee Waiver for Registered Vehicles: G.S.R. 714 (E), dated October 4, 2021, stipulates that no fee for the issuance of a registration certificate will be charged when a vehicle is registered with a ‘Certificate of Deposit’ under the scrapping initiative.
- Motor Vehicle Tax Concession: Under G.S.R. 720 (E), dated October 5, 2021, a concession in motor vehicle tax is available for vehicles registered through the ‘Certificate of Deposit’. The concession ranges from 15% to 25%, depending on whether the vehicle is transport-related or non-transport. This tax relief is available for up to 15 years for non-transport vehicles and eight years for transport vehicles.
Additionally, the Government has provided a general policy framework for compensation distribution under the National Highways Act, 1956, following land acquisitions for highway projects. Under Section 3H(1) of the Act, compensation amounts are to be deposited by the Central Government with the competent authority before land possession takes place, further ensuring streamlined processes.
These steps are part of the ongoing efforts by the Ministry of Road Transport & Highways to enhance road infrastructure and promote a more efficient vehicle ecosystem across India.
