Defence canteens will sell cars up to 12 lakh costing only | Can’t buy another vehicle till 8 yrs after first purchase

The Hush Post | 16:05 | One-minute read

A new order from the Indian Army’s Quarter General Branch states that from June 1 Canteen Stores Department (CSD) will sell cars only up to 2,500 CC and costing up to 12 lakh. The duration of the purchase of vehicles has also been increased from four to eight years.

The cars sold through canteen stores cost less to all the serving and retired military personnel as they get GST exemption of 28 per cent.

The May 24 order said that those in the pay level of 3A and 9 can purchase vehicles with a capacity up to 1,400 CC that comes in the range of 5 lakh. The decision will lead to the exclusion of most of the SUVs that cost more than Rs 12 lakh or with an engine capacity of more than 2,500 CC.

In addition to the restrictions on price and engine capacity, the new norms also say a serving or retired jawan can buy a car from the canteen only once during service and once after retirement.

The military officials explain that these curbs have become necessary because out of the Army canteen’s budget of 17,000 crore, a third is devoted just to car sales.

According to a news report while car sales across the country fell 17 % in 2018-19, CSD car sales rose by 20%.

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