Getting your favorite number on your vehicle might become more expensive soon.
The government is preparing to impose GST on fancy number plates in India, with a planned rate of 28%, the highest GST rate.
According to a CNBC TV18 report, a proposal to impose GST on custom number plates has been submitted to the Finance Ministry.
The proposal asks whether fancy or personalized number plates can be considered luxury items and if GST can be charged at the highest rate of 28 percent.
Field formations made this suggestion
Sources say that field formations have sent a letter to the Central Board of Indirect Taxes and Customs (CBIC) asking for clarification on whether fancy number plates are subject to GST.
They believe these plates are luxury items and thus should be taxed at the 28% GST rate.
Fancy numbers are auctioned for lakhs of rupees
State government authorities are responsible for issuing number plates or registration plates for vehicles. They conduct auctions for fancy numbers, which require an additional fee.
Sometimes, these auctions reach lakhs of rupees, and people often spend substantial amounts to have fancy numbers installed on their vehicles.
What are field formations?
State government authorities are responsible for issuing number plates or registration plates for vehicles.
They conduct auctions for fancy numbers, which require an additional fee.
Sometimes, these auctions reach lakhs of rupees, and people often spend substantial amounts to have fancy numbers installed on their vehicles.
