India is working on making inter-state vehicle transfer easier. There are 2-3 related proposals/rules floating around

09 Jul 2026 - 10:53
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India is working on making inter-state vehicle transfer easier. There are 2-3 related proposals/rules floating around

1. Existing Rule - 12 Months Limit

As per Section 47 of Motor Vehicles Act, 1988:

You can keep a vehicle registered in one state and use it in another state for max 12 months

After 12 months, you must get a new registration mark from the new state RTO

Process: NOC from parent state, pay road tax in new state, apply for refund from old state. 

Supreme Court also clarified: No re-registration fee/token tax should be charged again if tax was already paid. 

2. New Proposal Being Discussed - "Up to 3 Years"

Government is considering easing this 12-month rule.

As per recent reports, India is planning to allow owners to keep vehicles in other states for up to 3 years on existing registration without re-registering.

The exact draft details are still under discussion by the GoM and MORTH. The goal is to reduce harassment for people who shift jobs/cities.

3. BH-Series - Already Active Solution

To solve this permanently, Govt already launched "Bharat Series BH Registration"

Who can get: Govt employees, Defence, PSUs, and private employees with offices in 4+ states

Benefit: No re-registration needed when you shift states. Vehicle can move freely across India

Tax: Road tax paid for 2 years at a time instead of 15 years upfront. Much lower initial cost. 

4. Other Proposals

'IN' Registration Series: Pilot proposal where vehicles pay road tax every 2 years, no re-registration on state change

Road Tax Exemption: GoM proposed exemption if vehicle >2 years old OR tax difference between states <2 .

Vehicle Inter-State Rule - Summary

Current Law:

You can use a vehicle registered in another state for max 12 months

After 12 months: Must re-register in new state RTO

Process: Get NOC from old state, pay road tax in new state, apply refund from old state

New Proposal Being Considered:

Govt is planning to extend this to up to 3 years on existing registration

No re-registration needed within 3 years

Still under discussion by MORTH

BH Series - Already Available:

Who: Govt, Defence, PSU, and private employees with offices in 4+ states

Benefit: No re-registration ever needed across India

Tax: Pay road tax every 2 years instead of 15 years upfront

Other Points:

Supreme Court: No extra re-registration fee if tax already paid

Some states like Karnataka now charge 5% to 15% tax on out-of-state vehicles used long term.

Bottom Line

Right now: 12 months limit still official

BH Series: Best option if you eligible - zero re-registration hassle

New 3-year proposal: Under consideration to give relief to all private owners, not just BH eligible . 

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