Jamshedpur 3rd July 2021: Buying small cars and bikes up to one lakh has now become expensive in the state. But, luxury cars have become cheaper.
It has happened because of the implementation of the Jharkhand Motor Vehicle Taxation (Amendment) Act 2021.
Ex-showroom price will be fixed with GST as per the Act.
At present, GST was added separately to the ex-showroom price.
Now 7% of the ex-showroom price for a personal car of Rs 7 lakh and above will have to pay a registration fee of 9% on the ex-showroom price of a car.
Currently, the registration fee is 6% on the purchase of the first car worth 7 lakhs, and 9% for the purchase of the second car.
The registration fee for buying a luxury car is 12%.
At the same time, a bike of Rs 1 lakh ex-showroom price will attract a 7% registration fee. Bikes above this will attract a 9% registration fee. Currently, the registration fee is 6%.
Similarly, in addition to the registration fee on the ex-showroom price, money will have to be paid separately for other documents, including smart cards.
Apart from this, the registration fee in Jharkhand was cheaper than in Bihar, Bengal, and Odisha.
In other states, along with GST, the tax was levied on the ex-showroom price.
Whereas in Jharkhand, GST was charged separately from the ex-showroom price.
In such a situation, the registration fee was calculated on the ex-showroom price.
With the addition of GST, the ex-showroom price of the luxury car will be higher, hence the tax has been reduced.