- GST Council has approved changes to automobile taxation
- New tax structure affects car and two-wheeler prices nationwide
- Changes effective from September 22, 2025
- Small cars and entry-level motorcycles become cheaper
- Petrol, LPG, CNG cars below 1,200 cc and diesel cars up to 1,500 cc taxed at 18 percent
- Popular models like Maruti Swift, Hyundai i20, and Tata Altroz to see price reductions
- Commuter motorcycles up to 350 cc also benefit
- Commercial vehicles like three-wheelers, buses, and trucks taxed at 18 percent
- Small hybrids see tax reduction; electric vehicles remain at 5 percent
- Mid-size and large cars face a flat 40 percent GST
- Affects SUVs like Hyundai Creta and Tata Harrier
- Motorcycles above 350 cc also taxed at 40 percent
- New rate simplifies tax structure by removing compensation cess
- Industry experts praise the move for positive impact on automotive and farming sectors
- GST on new pneumatic tyres reduced from 28 percent to 18 percent
- Tractor tyres and tubes taxed at 5 percent, benefiting rural mobility
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "India"
- India’s GST Council Recommends Tax Exemptions, Simplified Structure, and Rate Reductions Effective September 22
- Nirmala Sitharaman Explains GST Reforms Using Popcorn Example to Highlight Classification Challenges
- GST Revamp: 40% Tax on Sin Goods and Luxury Items Explained
- GST Council Unveils Next-Gen Reforms: Export Services, Refunds, Tribunal, and Rate Simplification
- GST Council’s 5% Tax Retention on EVs Eases Industry Concerns Amid Competitive Pressures
