The state government has instructed transport department officials to work from home during the Diwali holidays from October 18 to 28 to facilitate registration of vehicles purchased during this period.
The GST rate cuts that came into effect on September 22 are expected to boost car sales during the festive season.
Senior transport department officials said the work-from-home mode would enable faster registration of vehicles sold during Dhanteras and Diwali.
In a recent notification issued by the transport department, the regional transport officers, additional regional transport officers and motor vehicles inspectors were told that "all motor vehicle offices" shall "continue to process and dispose of applications online during the holiday period without requiring the physical presence of applicants".
The notification states that the festive season "generally witnesses a substantial rise in the sale and registration of motor vehicles, and the prolonged closure may lead to a heavy backlog".
The order states that this year, "with the revision of GST rates, motor vehicle sales are expected to increase significantly".
On September 3, the Union government announced a rejig of the goods and services tax, reducing the GST on small cars (under 4 meters) from 28% to 18%. In the new structure, larger SUVs and luxury cars are placed under a flat 40% tax slab, replacing the old system of 28% GST plus a higher cess, which brought the total payable levy close to 50 per cent.
According to sources in the automobile industry, car sales have surged since the tax cuts came into effect.
Several reports on consumer surveys pointed out that passenger vehicle sales were up by 35 per cent year-on-year during Durga Puja and Navaratri, extending till Dusshera on October 2.
"Multiple car dealers have said they expect to see a surge in car bookings during Dhanteras and Diwali this year. In view of this trend, the motor vehicles inspectors (MVIs) have been instructed to check applications for new registrations and send them to the regional transport officers for final clearance online," a senior transport department official said.
"Once an application is cleared, the vehicle can be registered, and the owner can apply for a number plate with a new registration number," said the official.
According to several senior officials, they could not recall when the state government issued a circular instructing senior transport department officials to work from home during the Diwali holidays.
Almost all of them acknowledged that mobile phones with Internet connectivity would suffice to access and clear applications online.
"One can clear or reject an application on a mobile phone sitting at home," said a senior officer of the department.
"New car owners will be able to bring out their cars during Diwali with new registration plates and won't have to violate the rules," said a motor vehicles inspector.
With each vehicle registration, the state government earns revenue. The amount varies depending on the cubic capacity.
"A 100cc motorcycle, for instance, will invite a lifetime road tax of around ₹3,700 during new registration. A car below 1,000cc will attract a tax of ₹26,000 for five years, while one above 2,000cc will attract a tax of ₹47,000 for five years," the senior official said.
