Key Highlights

  • The offer: Gujarat will give up to 50% concession in Motor Vehicle Tax on a new vehicle bought against a Certificate of Deposit (COD) for scrapping an old one.
  • Deadline: Only CODs issued on or before March 31, 2027, will qualify.
  • Eligible vehicles: BS-I and older vehicles, plus all BS-II medium and heavy goods and passenger vehicles.
  • One-time only: The same scrapped vehicle cannot be used to claim the concession twice.
  • Bigger than national rules: Central rules allow states up to 25% for private vehicles and 15% for commercial ones.

Gujarat is offering a stronger push to get old, polluting vehicles off its roads. The state government has announced a concession of up to 50% in Motor Vehicle Tax for owners who scrap eligible old vehicles and buy new ones, according to a recent notification by the Ports and Transport Department.

The concession is linked to the Certificate of Deposit (COD), which is issued after a vehicle is scrapped at an authorised facility. Owners can present the COD while registering the new vehicle to claim the benefit.

Which Vehicles Qualify

  • All vehicles (transport and non-transport) made under Bharat Stage-I (BS-I) or earlier emission standards.
  • Medium and heavy goods vehicles made under BS-II standards.
  • Medium and heavy passenger vehicles made under BS-II standards.

The existing method of calculating Motor Vehicle Tax remains unchanged; the concession is applied as per the prescribed rules.

The Deadline and the Rules

The benefit applies only to CODs issued on or before March 31, 2027. Owners must complete the scrapping process and get the COD within that period.

The department has also clarified that a concession can be claimed only once per scrapped vehicle. If a concession has already been used against a COD for a particular vehicle, it cannot be claimed again.

Why It Matters: Gujarat Goes Beyond the National Floor

Under the national vehicle scrappage framework, the Centre notified in October 2021 a concession in Motor Vehicle Tax of up to 25% for non-transport vehicles and up to 15% for transport vehicles bought against a Certificate of Deposit.

Gujarat's offer of up to 50% is twice the national ceiling for private vehicles, and more than three times the ceiling for commercial vehicles. That makes the state's incentive significantly stronger than what many other states offer.

The focus on BS-II heavy trucks and buses is also telling. These are among the most polluting vehicles still on the road, and their owners are usually transporters and fleet operators, for whom a large tax saving on a new vehicle can make a real difference to the decision to replace an old one.

Other Benefits You Can Combine

The tax concession is not the only incentive available when a vehicle is scrapped:

  • Zero registration fee: The Centre has waived the registration fee for new vehicles bought against a COD.
  • Scrap value: Owners can receive a scrap value of about 4–6% of the ex-showroom price of a new vehicle.
  • Manufacturer discount: Manufacturers can give up to 5% discount on a new vehicle.

How to Claim the Benefit

  1. Take your eligible old vehicle to a Registered Vehicle Scrapping Facility (RVSF).
  2. Get the Certificate of Deposit (COD) after scrapping. The COD is valid across the country.
  3. Buy the new vehicle and produce the COD at the time of registration.
  4. Make sure your COD is issued on or before March 31, 2027.

The Bottom Line

With up to 50% off Motor Vehicle Tax, Gujarat has made one of the strongest offers in the country to replace old, polluting vehicles. For owners of BS-I vehicles and older heavy trucks and buses, the next 18 months offer a clear financial reason to scrap and upgrade.

With inputs from IANS.

Key Highlights

  • The offer: Gujarat will give up to 50% concession in Motor Vehicle Tax on a new vehicle bought against a Certificate of Deposit (COD) for scrapping an old one.
  • Deadline: Only CODs issued on or before March 31, 2027, will qualify.
  • Eligible vehicles: BS-I and older vehicles, plus all BS-II medium and heavy goods and passenger vehicles.
  • One-time only: The same scrapped vehicle cannot be used to claim the concession twice.
  • Bigger than national rules: Central rules allow states up to 25% for private vehicles and 15% for commercial ones.

Gujarat is offering a stronger push to get old, polluting vehicles off its roads. The state government has announced a concession of up to 50% in Motor Vehicle Tax for owners who scrap eligible old vehicles and buy new ones, according to a recent notification by the Ports and Transport Department.

The concession is linked to the Certificate of Deposit (COD), which is issued after a vehicle is scrapped at an authorised facility. Owners can present the COD while registering the new vehicle to claim the benefit.

Which Vehicles Qualify

  • All vehicles (transport and non-transport) made under Bharat Stage-I (BS-I) or earlier emission standards.
  • Medium and heavy goods vehicles made under BS-II standards.
  • Medium and heavy passenger vehicles made under BS-II standards.

The existing method of calculating Motor Vehicle Tax remains unchanged; the concession is applied as per the prescribed rules.

The Deadline and the Rules

The benefit applies only to CODs issued on or before March 31, 2027. Owners must complete the scrapping process and get the COD within that period.

The department has also clarified that a concession can be claimed only once per scrapped vehicle. If a concession has already been used against a COD for a particular vehicle, it cannot be claimed again.

Why It Matters: Gujarat Goes Beyond the National Floor

Under the national vehicle scrappage framework, the Centre notified in October 2021 a concession in Motor Vehicle Tax of up to 25% for non-transport vehicles and up to 15% for transport vehicles bought against a Certificate of Deposit.

Gujarat's offer of up to 50% is twice the national ceiling for private vehicles, and more than three times the ceiling for commercial vehicles. That makes the state's incentive significantly stronger than what many other states offer.

The focus on BS-II heavy trucks and buses is also telling. These are among the most polluting vehicles still on the road, and their owners are usually transporters and fleet operators, for whom a large tax saving on a new vehicle can make a real difference to the decision to replace an old one.

Other Benefits You Can Combine

The tax concession is not the only incentive available when a vehicle is scrapped:

  • Zero registration fee: The Centre has waived the registration fee for new vehicles bought against a COD.
  • Scrap value: Owners can receive a scrap value of about 4–6% of the ex-showroom price of a new vehicle.
  • Manufacturer discount: Manufacturers can give up to 5% discount on a new vehicle.

How to Claim the Benefit

  1. Take your eligible old vehicle to a Registered Vehicle Scrapping Facility (RVSF).
  2. Get the Certificate of Deposit (COD) after scrapping. The COD is valid across the country.
  3. Buy the new vehicle and produce the COD at the time of registration.
  4. Make sure your COD is issued on or before March 31, 2027.

The Bottom Line

With up to 50% off Motor Vehicle Tax, Gujarat has made one of the strongest offers in the country to replace old, polluting vehicles. For owners of BS-I vehicles and older heavy trucks and buses, the next 18 months offer a clear financial reason to scrap and upgrade.

With inputs from IANS.