Centralised registration for private vehicles from Wednesday

Thiruvananthapuram: The proposed Bharat (BH) series centralised registration for private vehicles will come into effect from Wednesday.

The Central government proposed the BH series to do away with interstate registrations, now required to use a private vehicle outside its registered State for more than one year.

Several States raised their concerns over the BH series registration at an online meeting the joint secretary of the Central Ministry of Surface Transport convened on Monday. The rollout of the new series will be delayed by a week only if the Centre accepts the concerns and issues a new order.

The Centre, however, took a stand that it had included the changes the States, including Kerala, had suggested while the draft order was circulated. The final order was issued after making the suggested changes, and if further amendments are required, it could be made after implementing the order.

Owners to save tax
Kerala’s major concern was over the loss of revenue even though the new series will help vehicle owners save money. Currently, vehicle owners are required to make a one-time tax remittance for 15 years while purchasing a new vehicle. But under the BH series, tax for only two years needs to be remitted, which will deny the States a lump sum amount.


In Kerala, the current tax is nine to 12 per cent of the cumulative total of the vehicle’s price, and the GST and compensatory cess. The tax suggested by the Centre is eight to 12 per cent.

The current GST is 28 per cent, while up to 22 per cent, according to the length of the vehicle, is being charged as compensatory cess.

Under the BH series, the tax is fixed on the price of the vehicle’s price alone, which will aid the buyer.

Eligibility for BH registration
Military personnel, those attached to the defence ministry, public sector employees, Central and state government officials, bank employees, and staff members of private firms with footprints in four or more states will be eligible to register their vehicles under the BH series.

Though only five per cent employees are now eligible for BH registration, the Centre has plans to bring all registrations under the series in future.

Scope for misuse
Several States, however, pointed out the possibility of those eligible selling the vehicles immediately after purchase and getting the BH registration. They demanded the Centre to set a timeframe for selling BH registered vehicles, and a provision to collect the entire tax if the vehicle is sold within the stipulated time frame.

Current vehicle tax in Kerala
Price of the car (in rupees)
Up to 5 lakh — 9%
Up to 10 lakh — 11%
Up to 15 lakh — 13%
Up to 20 lakh — 16%
Above 20 lakh — 21%

Central tax
Up to 10 lakh — 8%
Up to 20 lakh — 10%
Above 20 lakh — 12%

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