Archive · 1 Oct 2026
Gujarat Offers Up To 50% Tax Concession For Scrapped Vehicles
Gujarat is offering a discount on the tax paid when buying and registering a new vehicle.
To receive it, an owner must first scrap an eligible old vehicle at an authorised facility.
The facility will provide a Certificate of Deposit, or COD.
The owner must show this document when registering the new vehicle.
The discount can be as high as 50 percent.
The program includes very old vehicles and certain medium and heavy vehicles.
The COD must be issued by March 31, 2027.
The same old vehicle cannot be used to claim the discount twice.
Gujarat will provide up to 50% Motor Vehicle Tax concession when eligible old vehicles are scrapped and replaced with new ones.
The concession requires a Certificate of Deposit issued by an authorised vehicle-scrapping facility.
Eligible vehicles include BS-I and earlier transport and non-transport vehicles, plus specified medium and heavy BS-II vehicles.
Only Certificates of Deposit issued on or before March 31, 2027, will qualify.
A scrapped vehicle can be used for the concession only once, and existing Motor Vehicle Tax calculations remain unchanged.
- Who
- The Government of Gujarat and owners of eligible old vehicles.
- What
- A Motor Vehicle Tax concession of up to 50% for purchasing and registering a new vehicle after scrapping an eligible old one.
- When
- The benefit applies to Certificates of Deposit issued on or before March 31, 2027.
- Where
- Gujarat, during registration of the replacement vehicle.
- Why
- To encourage the authorised scrapping and replacement of vehicles built to older emission standards.
- Maximum concession
- Up to 50% of Motor Vehicle Tax
- Required document
- Certificate of Deposit issued after authorised scrapping
- Eligible older standards
- Bharat Stage-I and earlier for transport and non-transport vehicles
- Additional eligible vehicles
- Medium and heavy goods and passenger vehicles manufactured under BS-II
- COD deadline
- March 31, 2027
- Tax calculation
- The existing method of calculating Motor Vehicle Tax remains unchanged
- Usage restriction
- The same scrapped vehicle cannot support more than one concession
