Second-Hand Markets and Resale
Rules, Taxes and Consumer Protection
Used goods are governed by consumer law, and taxes and registration rules apply to cars and other big items.
The legal side.
Consumer law
Sellers who trade regularly must honour promises, and some disputes go to consumer forums.
Taxes
GST applies on the margin for many dealer-sold used goods.
Registration
Car ownership must be transferred formally through the transport office.
Records
Keep invoices, transfer papers and inspection reports.
A transfer
A buyer completes RC transfer at the RTO to avoid future trouble.
Skipping paperwork on a private sale
It can create legal problems.
Key takeaways
- Consumer law applies to dealers.
- GST rules apply.
- Transfer paperwork is vital.
- Keep records.
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