No more re-registration hurdles: Centre plans 3-year interstate vehicle rule

New Delhi: The Central Government is planning to extend the period during which a vehicle registered in one state can be used in another state without changing its registration. The government is considering introducing a law that will allow a vehicle owner to use their vehicle in another state for up to three years without changing the existing registration. Currently, this is permitted for only one year without altering the registration.

Officials assess this proposed change as highly beneficial for individuals who experience frequent job transfers or those required to work in various states on a short-term contractual basis. The primary beneficiaries of this proposal will be people who return to their home states after working in other states for up to three years.

This move is expected to be similar to the Bharat (BH) registration system. It will allow vehicle owners to use their own vehicles across different states and Union Territories without obtaining re-registration. Currently, the law mandates that if a vehicle registered in one state is used in another state for more than a year, it must be re-registered in that state.

However, The Times of India, quoting transport officials, reports that the disparity in road tax among various states is a major obstacle to this move. The report also highlights that this issue can only be resolved by unifying road tax rates and establishing a mechanism for the proportional transfer of road tax between states.