Independent guide by India Customer Care · Not the Parivahan government website · We never ask for your licence number, vehicle number, Aadhaar or OTP. Official services: parivahan.gov.in
Vehicle Scrapping: RVSF, Certificate of Deposit and Tax Benefit
To scrap a vehicle legally, hand it to a Registered Vehicle Scrapping Facility (RVSF), not a local scrap dealer. The RVSF checks the vehicle's records, takes it into custody and gives you a Certificate of Deposit. After scrapping, it issues a Certificate of Vehicle Scrapping and the registration is cancelled. The Certificate of Deposit is valid for 2 years. With it, a new vehicle gets up to 25% off motor vehicle tax (15% for a transport vehicle) and no registration certificate fee. You can also sell the certificate to someone else.
- Where
- A Registered Vehicle Scrapping Facility
- You get
- Certificate of Deposit, then Certificate of Vehicle Scrapping
- Certificate valid
- 2 years, tradable
- Tax concession
- Up to 25% (private), 15% (transport)
- Rules
- G.S.R. 653(E), 2021, amended 2022 and 2024
On this page
Which vehicles can be scrapped, and when must you scrap?
Scrapping is voluntary for most private owners: you can scrap any vehicle registered in your name. The rules call a vehicle that has reached the end of its use an end-of-life vehicle. Under the official definitions, that includes a vehicle:
- that is no longer validly registered;
- that has been declared unfit by an automated testing station or the RTO;
- whose registration has been cancelled under the Motor Vehicles Act or by a court order; or
- that you, the registered owner, declare as waste.
Under the Environment Protection (End-of-Life Vehicles) Rules, 2025 (S.O. 98(E), 6 January 2025), the registered owner must hand over an end-of-life vehicle within 180 days of it becoming one. You can hand it over at a vehicle maker's designated sales outlet or collection centre, or directly at an RVSF. Collection centres send the vehicles on to an RVSF.
How do you find a registered scrapping facility?
RVSFs are private businesses registered by the state transport department under the 2021 rules. On 30 January 2026 there were 129 in 21 states and union territories, according to the Ministry.
- Use the Ministry's vehicle scrapping portal, vScrap (vscrap.parivahan.gov.in). Scrapping requests go through VAHAN, and the authorised facilities are listed on the VAHAN system.
- Ask your RTO or state transport department for the RVSFs registered in your state. They operate in only 21 states and union territories so far, so there may be none in your district.
- Before you hand over the vehicle, confirm that the facility will issue a digitally signed Certificate of Deposit through VAHAN. That is the proof that it is registered.
The government doesn't fix the price an RVSF pays you. Prices are set by the market and the vehicle's condition, so compare offers from more than one RVSF.
Open vScrap (official) vscrap.parivahan.gov.in
How does scrapping work, step by step?
YouRVSF / RTO / VAHANPayment
- Choose an RVSF and apply for scrapping through it on VAHAN
- Records clear: no loan, not stolen, not blacklisted?No: the request is refused with a reason; clear the problem first
- Hand over the vehicle and the original RC
- The RVSF pays you the agreed scrap price
- The RVSF issues a digitally signed Certificate of Deposit
- The vehicle is dismantled and a Certificate of Vehicle Scrapping is issued
- The RTO cancels the registration on VAHAN
- Apply. The application is made on VAHAN with the RVSF you choose. The RVSF accepts it, or tells you why not.
- Checks. VAHAN checks whether the vehicle is on a loan (hypothecation), whether it is reported stolen in the National Crime Records Bureau database, and whether it is blacklisted.
- Hand over. The RVSF takes the vehicle into its custody and issues the Certificate of Deposit. It recognises that ownership has passed to the RVSF.
- Scrap. The RVSF dismantles the vehicle following the Central Pollution Control Board's guidelines and keeps the cut piece with the chassis number. It then issues a digitally signed Certificate of Vehicle Scrapping.
- De-register. The registration is cancelled at the RTO on VAHAN. Where your RTO asks for it, take the Certificate of Vehicle Scrapping and the defaced RC there.
✔ You'll know it worked when you have both certificates and the vehicle shows as scrapped, with its registration cancelled, on VAHAN.
What documents do you need, and what is checked?
Before you go to the RVSF
- The original RC of the vehicle.
- Any other original documents the RVSF asks to see. It verifies the owner's documents and the vehicle's records before scrapping.
- If the vehicle was on a loan: proof that the loan is closed and the hypothecation removed. See loan removal from the RC.
- No pending tax or challans. You may be asked for an affidavit that there are no dues and no pending cases.
- Your mobile number on VAHAN up to date, for messages about the application. See mobile number update.
- Remove your personal items, and close the vehicle's FASTag with its issuer.
The Ministry's documents name the original RC and the checks above. RVSFs and states may ask for more, so ask the facility for its list when you book.
What can you do with the Certificate of Deposit?
The Certificate of Deposit is issued only by an RVSF. It is valid for 2 years from the date of issue. The 2024 amendment made it tradable electronically.
Use it for your new vehicle
- Give the Certificate of Deposit to the dealer when the new vehicle is registered. The registration is then made against it.
- You get the state's motor vehicle tax concession, and no fee for the registration certificate.
- Use it within the 2 years. After that it expires.
Sell it to someone else
- Not buying a vehicle soon? Sell the certificate before it expires. On vScrap, use the trade button or the trading portal and quote your price.
- Buyers bid; you allocate the certificate to the highest bidder. A sell offer expires after a set period, and you can post a new one.
- The buyer confirms, pays with Pay now, and then sees it on the View Certificate of Deposit screen.
Buy a certificate for your new vehicle
- You don't need to own an old vehicle. You can bid for a certificate someone else is selling, on the same trading portal.
- Check the expiry date before you bid, and that the price is less than the tax you will save.
- Vehicle makers' discounts for commercial vehicles were offered against a traded certificate too (see below).
How much tax do you save on a new vehicle?
Rule 51A of the Central Motor Vehicles Rules (G.S.R. 720(E), in force from 1 April 2022) allows a concession in motor vehicle tax for a vehicle registered against a Certificate of Deposit. Road tax is a state tax, so each state applies it. 27 states and union territories had announced it by the end of 2025.
Private (non-transport) vehicle
- Tax concession of up to 25%.
- For up to 15 years from the new vehicle's first registration.
Transport (commercial) vehicle
- Tax concession of up to 15%.
- For up to 8 years from the new vehicle's first registration.
| Benefit | What you get | Rule |
|---|---|---|
| Motor vehicle tax | Up to 25% (private) or 15% (transport) off | G.S.R. 720(E), rule 51A |
| Very old vehicle scrapped | 50% off, for a scrapped vehicle of BS-I or earlier norms, or a medium or heavy goods or passenger vehicle of BS-II, in states that notify it | G.S.R. 200(E), 26 Mar 2025 |
| Registration certificate fee | Not charged | G.S.R. 714(E) |
| Vehicle makers' discount | Passenger vehicles: 1.5% of the ex-showroom price or ₹20,000, whichever is less. Commercial vehicles: up to 3% | Voluntary offer by makers, announced August 2024 |
The makers' discounts were announced for one year (passenger vehicles) and two years (commercial vehicles), and the Ministry still listed them in its 2025 year-end review. Ask the dealer in writing whether they apply to your purchase. For how road tax is worked out, see road tax and scrapping.
Which rules govern scrapping?
| Notification | Date | What it does |
|---|---|---|
| G.S.R. 653(E): RVSF Rules, 2021 | 23 Sep 2021 (in force 25 Sep 2021) | Registration and duties of scrapping facilities; Certificate of Deposit and Certificate of Vehicle Scrapping |
| G.S.R. 695(E): amendment | 13 Sep 2022 | Certificate of Deposit valid 2 years for incentives; revised certificate format; longer facility registration |
| G.S.R. 212(E): amendment | 15 Mar 2024 | Certificates tradable electronically; no incentives for government or impounded vehicles; pollution board consent and audits for facilities |
| G.S.R. 720(E) | 5 Oct 2021 (from 1 Apr 2022) | Tax concession (rule 51A) |
| G.S.R. 714(E) | 4 Oct 2021 (from 1 Apr 2022) | Higher fees for older vehicles; no registration fee against a Certificate of Deposit |
| G.S.R. 200(E) | 26 Mar 2025 | 50% concession for very old vehicles, for states to notify |
| S.O. 98(E): End-of-Life Vehicles Rules, 2025 | 6 Jan 2025 | Duties of vehicle makers; owners hand over end-of-life vehicles within 180 days |
Fitness tests are moving to automated testing stations, and the fees for renewing older vehicles went up from April 2022. See RC renewal before you decide whether to renew or scrap.
What can go wrong, and how do you fix it?
| Your situation | What it usually means | What to do |
|---|---|---|
| The RVSF refuses the request | A loan, theft report or blacklist entry on VAHAN | Close the loan and remove hypothecation; clear dues; ask the RTO about the blacklist entry. |
| You sold it to a local scrap dealer | No Certificate of Deposit; the RC may still be in your name | Ask the RTO how to cancel the registration. You stay liable if the vehicle is misused while it is still registered to you. |
| The original RC is lost | The RVSF needs the original | Get a duplicate RC first, or ask the RTO what it accepts. |
| The vehicle was stolen and found wrecked | The theft report blocks scrapping | Close the theft case with the police first. See vehicle theft. |
| The dealer doesn't apply the tax concession | Your state hasn't notified it for that vehicle, or the certificate was not entered | Ask the RTO for the state's notification before the vehicle is registered, and give the dealer the certificate before tax is paid. |
| The certificate is about to expire | 2 years from issue | Use it or sell it on the trading portal before the date. |
| The vehicle still shows as active on VAHAN | The RTO hasn't cancelled the registration | Take the Certificate of Vehicle Scrapping to the RTO and ask for the cancellation. |
Frequently asked questions
Is scrapping compulsory after 15 years?
Not for a private vehicle in general: you can renew the RC if it passes the fitness test. Government vehicles can't be renewed after 15 years, and Delhi-NCR has its own age limits. An end-of-life vehicle must be handed over within 180 days under the 2025 rules.
How long is the Certificate of Deposit valid?
2 years from the date of issue.
Can I sell my Certificate of Deposit?
Yes. It is tradable on the trading portal linked from vScrap, through bids.
How much road tax do I save?
Up to 25% for a private vehicle (for 15 years) and up to 15% for a transport vehicle (for 8 years), as your state applies it. Some states give 50% for very old vehicles under G.S.R. 200(E).
Who pays me for the old vehicle?
The RVSF. The government doesn't fix the price; it depends on the market and the vehicle's condition.
Can I scrap a vehicle that is on a loan?
Not until the loan is closed. VAHAN checks for hypothecation.
Does a local scrap dealer give a Certificate of Deposit?
No. Only a registered facility issues one through VAHAN.
Do I get the tax benefit on a vehicle in another state?
That depends on whether the state where the new vehicle is registered accepts the certificate and has notified the concession. Ask that state's RTO first.
Sources
- Lok Sabha – Starred Question 250, 12 Dec 2024: notifications G.S.R. 653(E), 695(E), 212(E), 714(E), 720(E), 29(E) (accessed 26 Oct 2026)
- G.S.R. 720(E), 5 Oct 2021 – rule 51A tax concession (PIB, accessed 26 Oct 2026)
- vScrap (MoRTH) – FAQ on trading the Certificate of Deposit: 2-year expiry (accessed 26 Oct 2026)
- NIC eTransport Division – RVSF application under G.S.R. 653(E): process, checks, certificates (accessed 26 Oct 2026)
- NITI Aayog – Circular economy of end-of-life vehicles (Jan 2026): 2022 and 2024 amendments, G.S.R. 200(E), definitions (accessed 26 Oct 2026)
- PIB – End-of-Life Vehicles Rules 2025 (28 Jul 2025): 180-day deposit (accessed 26 Oct 2026)
- PIB – vehicle scrappage policy (4 Feb 2026): 129 RVSFs, G.S.R. 200(E) for states (accessed 26 Oct 2026)
- PIB – scrapping incentives and RVSF prices (28 Nov 2024) (accessed 26 Oct 2026)
- PIB – vehicle makers' discounts (28 Aug 2024) and MoRTH Year End Review 2025 (accessed 26 Oct 2026)
- Rajasthan State Pollution Control Board – end-of-life vehicle FAQs (accessed 26 Oct 2026)
- Government of Assam – Vehicle Scrappage Policy 2022 (accessed 26 Oct 2026)
Page history: 26 Oct 2026: first published.