A discussion on the Vehicle Scrap Policy can be discussed in the GST Council meeting this Saturday. Under this policy, preparations are being made to give a big boost to the purchase of new commercial vehicles for vehicles older than 20 years.
GST council meeting will discuss on the Vehicle Scrap Policy on this Saturday. Under this policy, the vehicles older than 20 years can be replaced with the new commercial vehicle and also, there will be a heavy discount in purchasing the vehicle.
In the GST Council meeting, there will be a proposal to give the tax relaxation. Under this scheme, the GST will also be levied down on the vehicles that will be purchased by the customers.
According to the reports in The Telegraph, if GST Council agreed with the proposal then the customers will only have to pay 10 or 12 per cent tax instead of 28 per cent. However, under this scheme, there will be the terms and condition that buyers have to change their commercial vehicles older than 20 years.
What is Vehicle Scrap Policy?
The Vehicle Scrap Policy has been brought by the Ministry of Road Transport and Highways. Under this scheme, the aim is to exclude the commercial vehicles from the road which older than 20 years.
However, this policy has already passed by the Ministry of Finance and also from the Prime Minister’s office. Now, it has to receive the green signal from GST Council. The council can take a decision to give a tax exemption under this policy.