Maharashtra plans stricter luxury car registration rules to curb road tax evasion

Representation pic

Registering luxury cars outside Maharashtra to save on road tax may soon become far more difficult, with the state government planning stricter vehicle registration rules to curb tax evasion.

Maharashtra Transport Minister Pratap Sarnaik informed the Assembly that the government is drafting a policy that will make GST verification mandatory before registering high-end vehicles. The move aims to ensure that cars bought in Maharashtra are also registered in the state, preventing revenue tax leakages and revenue loss.

Tax loss

Pratap Sarnaik

Congress MLA Vijay Wadettiwar alleged that several high-end vehicles are being registered outside the state to avoid paying tax, resulting in revenue losses.

New policy

Sarnaik said the proposed policy would require verification of GST records and loan-related documents. If these documents show that the buyer is based in Maharashtra, the vehicle will have to be registered within the state.