The Indian automobile industry has witnessed a major shift with the implementation of GST 2.0, which has restructured tax rates across various vehicle categories. The updated GST slabs aim to make vehicles more affordable, promote electric mobility, and support small-capacity vehicles while maintaining balanced taxation on larger segments.
Here’s a complete breakdown of the revised GST rates across different vehicle categories:
1. All Tractors Under 1800cc
- Old GST + Cess: 12%
- New GST: 5%
- Impact: Significant price reduction for farmers and agricultural sectors, encouraging mechanization and boosting rural development.
2. Cars Under 1200cc (Petrol, CNG, LPG) – Sub-4M Cars
- Old GST + Cess: 29%
- New GST: 18%
- Impact: Affordable pricing for small hatchbacks and compact cars, benefiting budget-conscious buyers.
3. Cars Under 1500cc (Diesel) – Sub-4M Cars
- Old GST + Cess: 31%
- New GST: 18%
- Impact: Diesel sub-compact cars become cheaper, making them more attractive for customers seeking better mileage.
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4. Cars Up to 1500cc
- Old GST + Cess: 45%
- New GST: 40%
- Impact: Marginal relief for mid-sized sedans and SUVs in this segment.
5. Cars Above 4M & 1500cc (Ground Clearance Under 170mm)
- Old GST + Cess: 48%
- New GST: 40%
- Impact: A considerable price cut for large sedans and low-ground-clearance premium vehicles.
6. All Electric Vehicles (EVs)
- Old GST + Cess: 5%
- New GST: 5% (No Change)
- Impact: Continued government support for EV adoption with a low GST slab to promote eco-friendly mobility.
7. All Capacity 3-Wheelers
- Old GST + Cess: 28%
- New GST: 18%
- Impact: Reduction in prices for passenger and cargo 3-wheelers, benefiting small businesses and transport operators.
8. All Bikes Under 350cc
- Old GST + Cess: 28%
- New GST: 18%
- Impact: More affordable commuter motorcycles, boosting sales in the budget-friendly bike segment.
9. All Bikes Above 350cc
- Old GST + Cess: 31%
- New GST: 40%
- Impact: Premium motorcycles become costlier, indicating a push to tax luxury two-wheelers at a higher rate.
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