The revised GST rates are set to bring down the prices of several vehicles, benefiting the general public and particularly the middle class. The government has reduced the GST on a variety of vehicles and auto parts from 28% to 18%, leading to cost savings for consumers and logistics companies alike. This change, effective from September 22nd, encompasses several categories.
Among the key changes are reductions in the GST on tires. New rubber pneumatic tires (excluding those for bicycles, rickshaws, and aircraft) will now be taxed at 18%, down from 28%. This should lead to lower maintenance costs for these vehicles. Additionally, GST on transportation motor vehicles used for carrying goods has also been reduced to 18%, providing further relief. Buses, trucks, and ambulances are also included in this tax relief.
Road tractors used for pulling semi-trailers with engine capacities exceeding 1800cc will be subject to an 18% tax rate. This adjustment is expected to benefit the logistics and transportation sectors, potentially decreasing the cost of transporting goods.
For families, vehicles with smaller engines are set to become more affordable. Cars powered by petrol, CNG, and LPG, with an engine capacity up to 1200cc and a length of up to 4 meters, will experience price reductions. Diesel cars with engines up to 1500cc and a length under 4 meters will also fall under the lower GST slab. This will alleviate the financial burden on those looking to purchase hatchbacks and compact cars, which will now be taxed at 18% instead of the previous 28%.
Furthermore, three-wheeler vehicles and motorcycles (with engines up to 350cc, including scooters and mopeds) will become cheaper, benefiting families in smaller cities and towns who rely on these vehicles for daily commuting.
Ambulances, which come equipped with all necessary medical fittings from the factory, will also see reduced taxes. This will positively impact the healthcare sector, potentially resulting in more affordable ambulance services. Hybrid vehicles (petrol-diesel + electric motor) are now included in the relief measures, which could lead to more affordable prices for eco-friendly vehicles in the future. Compact hybrid cars will be taxed at 18%.