Another shocker for vehicle owners in UT

Amit Khajuria

Tribune News Service

Jammu, December 6

The Transport Department of the newly created Union Territory of Jammu and Kashmir has planned to recover 9 per cent of the token tax from vehicle buyers on the GST amount paid on the purchase of their vehicle.

If official sources are to be believed, the department is set to give another shock to the vehicle buyers who have purchased new vehicles and got these registered with their respective regional transport offices (RTOs) after August 1 by sending them notices to pay 9 per cent of the GST amount paid on the purchase of their vehicles.

A notice was issued by the department of J&K on November 26 wherein it had sought to clarify that one-time token tax would be charged on the bill amount of the vehicle, which is including 18 per cent GST and additional auto cess.

The Governor’s administration of the erstwhile state of Jammu and Kashmir had issued an SRO number 492 on August 1, 2019, that all new vehicles purchased from August 1 onwards would be charged 9 per cent of the cost of vehicle after which the automobile dealers had started charging 9 per cent of the token tax for registration of new vehicle from the customers. The 9 per cent was being charged on the net value of the vehicle, ie bill amount minus the GST and other taxes.

The department is collecting 9 per cent of the gross amount of the vehicle from November 26 onwards, but now the department is planning to send notices to the vehicle owners who have purchased new vehicles after August 1 and have registered the vehicles by paying 9 per cent of the net amount of the vehicle.

“As the department has started charging 9 per cent token on the GST as well, now they are planning to send notice to the consumers who have already registered their vehicles without paying token of the GST amount,” a source informed The Tribune.

“Everyone is convinced with the logic that the GST cannot be taxed with token, but the Finance Department is reluctant to hear any plea on it. Now they have to recover the rest of the amount from the consumers, who have already registered their vehicle after August 1,” he added.