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Government Considering ‘IN’ Registration Series to Ease Interstate Transfers



New Interstate vehicle registration transfer rules

There has been a new rule proposed by The Ministry of Road Transport and Highways (MORTH). The rule is in reference to the new registration of the new vehicles. A new ‘IN’ series will be introduced as a pilot program that is likely to bring great relief in transferring vehicles from one state to another.

The draft proposal underlines that the series will be offered to defence personnel, state and central government employees, public sector undertakings (PSUs) and private sector companies, having offices in five or more states or union territories. This registration cools down the process which takes place under Section-47 of the Motor Vehicles Act, 1988. This act adheres to the requirement of an individual who has traveled along states needs to re-register the car to the state they have now moved to, after the period of twelve months of shifting there.

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The process is little complex and it requires having a no-objection certificate or NOC (from the parent state to the new state). Besides this, an application for a refund of road tax from the parent state is to be submitted, after the road tax of the new state is paid. The ‘IN’ series would tax vehicles for a time period of two years and after that, it would tax in multiple orders of two years to come forth.

inter-state vehicle transfer rules

This clears the fact that the initial road tax on a brand-new car registered under the ‘IN’ series during the time of purchase would be considerably lesser as compared to the traditional state registration. This would thus also result in a reduction in the price of the new car. Road tax on the parent state-based registration in India is calculated for about 15 years. The ‘IN’ series car buyers will now have to pay the road tax for 2 years rather than paying for 15 years at the time of purchase.

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Petrol cars under 10 lakhs will be charged 8 percent tax, cars in the range of Rs 10-12 lakhs will be charged 10 percent, and cars priced 20 lakhs and above would be charged 12 percent of the total invoice value. All the electric cars in will get 2 percent cut in tax during ‘IN’ series registration, while the diesel car buyers will pay an extra 2 percent. A late fee penalty is to be charged of Rs. 100/day for any delays in paying road taxes.

Plate format will vary from the standard plate format. The standard plates have cars registered in the first two letter format, the new IN series will include the year of the registration as the first two digits which would be similar to the plates of the cars from the armed forces.

The format will be as under:

  • XX – Registration year of the car
  • XX – Having ‘IN’ as the Indian series code
  • XX – Two letters between AA-ZZ
  • XXXX – Four-digit numbers from 0001-9999

The vehicle registration is state entitled and the new ‘IN’ series registration process is more inclined towards the centre. The new registration that takes place might have an impact on GST with a concise split between both central and state governments. It is to been seen if there will be a new centralized transport office that bypasses the state transport undertakings.


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