J&K Govt: New Rules for Buying Cars from Outside the Jammu and Kashmir

J&K Govt: New Rules for Buying Cars from Outside the Jammu and Kashmir

In a recent circular from the Government of Jammu and Kashmir’s Transport Department, concerns have been raised about the registration process for vehicles purchased from outside the Union Territory.

This development follows discussions held during a meeting led by the Principal Secretary to Government, Finance Department, on August 11, 2023.

There’s a suspicion that some Jammu and Kashmir residents might have bought vehicles from outside the UT without proper documentation. This could potentially lead to a loss of revenue, considering that the Goods & Service Tax (GST) is based on the destination of consumption.

If the address on bills or invoices does not reflect J&K, it might result in a financial setback for the government.

To address this issue and protect revenue, the Transport Commissioner and all registering authorities (RTOS/ARTOS) across the Union Territory have been instructed to launch an extensive education campaign.

The goal is to inform citizens about the importance of ensuring that vehicles purchased from dealers outside J&K come with GST invoices clearly stating the proper J&K address.

Moreover, the circular emphasizes that only valid and verifiable GST invoices, explicitly stating J&K as the place of supply, should be accepted during the vehicle registration process. This directive aligns with the existing Acts, Rules, and regulations in force.

This proactive step by the government underscores its commitment to maintaining fiscal integrity and ensuring that revenue generated from GST aligns with the principle of destination-based consumption tax.

All residents are encouraged to adhere to these guidelines to contribute to the responsible and lawful acquisition of vehicles in Jammu and Kashmir.