Gst rates for car
GST’s Effect on Indian Car Prices
The Goods and Services Tax Bill was a tool used by the government to establish a consistent tax system over the entire nation. Several cascading taxes levied by the state and federal governments were replaced by one indirect tax.
GST for Automobiles
In India, the GST is assessed at 5 different rates: 0%, 5%, 12%, 18%, and 28%. Due to the harmonisation of the GST rate across India, the overall cost of cars may decrease and become more uniform after the adoption of GST. The following GST rate applies to autos because they fall under Chapter 87 of the HSN Code.
GST Rate: 28%
The majority of vehicles, including bikes, automobiles, and autos, are subject to a 28% GST tax. Vehicles, including automobiles, are subject to a 28% tax under the following HSN Code descriptions.
vehicles that can fit ten people or more, including the driver.
Automobiles and other motorised vehicles, excluding those for the transportation of people with physical disabilities, that are primarily intended for people transportation, such as station waggons and race cars.
Automobiles used to deliver goods, excluding refrigerated automobiles.
Other than those primarily used for transporting people or products, special purpose motor vehicles (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological unit)
chassis for motor vehicles with attached engines
bodies for motor vehicles, including cabs
components and add-ons for automobiles
Self-propelled work trucks without lifting or handling equipment that are used for short-distance freight delivery in factories, warehouses, dock areas, or airports; tractors used on train station platforms; and individual components of the aforementioned vehicles
Motorized tanks and other armoured battle vehicles, whether or not they are armed, as well as their components.
Sidecars; auxiliary motorised motorcycles (including mopeds) and cycles, with or without.
Vehicle accessories and parts
Baby carriages and related equipment
Other than self-loading or self-unloading trailers for agricultural purposes, hand-propelled vehicles (such as hand carts, rickshaws, and the like), and animal-drawn vehicles, trailers and semi-trailers, other mechanically unpropelled vehicles, and parts thereof.
GST Rate for Automobiles in India
A car’s categorization and fuel type determine the GST rate that applies to it.
Based on car category, the GST rate
The tax rates that applied to each car segment both before and after the implementation of the GST regime are listed in the table below:
Small vehicles: Instead of the previous 28% tax rate, small vehicles like the Tata Tiago, Hyundai Grand i10, Maruti Suzuki Swift, and Volkswagen Polo now have a tax of 18%.
Mid-size vehicles: The tax rate for mid-size vehicles, such as the Maruti Baleno, Tata Nexon, Honda Amaze, and Nissan Kicks, has been drastically reduced from 39% to 18%.
Luxury vehicles: Owners of luxury vehicles, including Land Rovers, Bugatti Chirons, Lamborghinis, Aventadors, Toyota Land Cruisers, etc., must pay a tax equal to 28% of the vehicle’s value.
SUVs: The GST rate is 28% for SUVs like the Jeep Compass, Maruti Vitara Brezza, Renault Duster, Mahindra TUV, etc., which is a 17% decrease over the entire tax formerly imposed.
Electric automobiles: Prior to 2016, buyers of electric vehicles were subject to a 20.5% tax. After the introduction of GST, the overall tax rate was lowered to 12%.
Based on the type of fuel
According to the fuel type, the table below shows how the tax rate changed for each car category before and after the implementation of GST:
automobiles shorter than 4 metres
Petrol engines under 1.2 litres
This is the most popular car segment in India and includes models like the Maruti Suzuki Dzire, Hyundai Grand i10, Toyota Etios Liva, and Volkswagen Polo. The GST rate on these vehicles is 29%, which is a 2.5% decrease from the previous tax structure.
Diesel engines larger than 1.5 litres
Additional regularly seen automobiles in this category, such the Hyundai i20, Ford Ecosport, Maruti Suzuki Vitara Brezza, Mahindra TUV 300, etc., are subject to a GST of 31%, down from 33.25% under the previous system.
SUVs with engines greater than 1.2 Litres
Subcompact sedans and subcompact SUVs with gasoline engines greater than 1.2 litres and diesel engines smaller than 1.5 litres are now subject to taxes equal to 43%, a 1.7% decrease from the prior tax structure.
SUVs longer than 4 metres
SUVs longer than 4 metres are subject to a 43% tax, down from the previous regime’s 55%. Examples of such vehicles include the Tata Hexa, Mercedes-Benz GLC, Mahindra Scorpio, Ford Endeavour, and others.
Non-SUVs above 4 metres in length
Hatches and sedans with gasoline and diesel engines greater than 1.2 litres and 1.5 litres, such as the Honda City and Maruti Suzuki Ciaz, are subject to a tax of 43%, down from the previous tax rate of 51.6%.
Electric vehicles
Under the current GST tax structure, buyers of electric vehicles like the Mahindra eVerito and Mahindra e20 are only required to pay 12% of the purchase price as tax. Previously, this tax was equal to 20.5%.