New GST on Cars & Bikes: Prices Go Down!

A digital graphic thumbnail in Hindi and English showing bold text about the new GST on cars and bikes, highlighting reduced prices. The design features icons of a car and a bike with bright colors on a clean background, emphasizing affordability and savings under the updated GST rates in India.

New GST Slab on Cars and Bikes: Which Models Just Got Cheaper?

If you've been planning to buy a new car or bike, this news is for you! The GST Council has made a significant change to the GST rates on automobiles, leading to a substantial drop in prices for many popular models. This move is a major relief for consumers and is expected to boost sales across the country. Let's break down the new GST rates and see which vehicles are now more affordable.

How the New GST Affects Car Prices

The new GST rates have been simplified into two main slabs: 18% and 40%. This change has brought down the overall tax burden on most vehicles.

  • For Small Cars: Cars under 4 meters in length with an engine capacity of up to 1200cc (petrol) or 1500cc (diesel) now have their GST reduced from 28% to 18%.

    • The Impact: Popular models like the Maruti Swift, Tata Punch, and Hyundai Grand i10 Nios are now significantly cheaper, helping you save a substantial amount on your purchase.

  • For Larger Cars & SUVs: For cars longer than 4 meters, the total tax has been lowered from 43-50% to a flat 40%. Previously, these vehicles attracted a 28% GST plus an additional cess.

    • The Impact: This change makes mid-size SUVs and large vehicles more accessible. Models like the Mahindra XUV700, Scorpio N, and Toyota Fortuner are now more affordable.

New GST on Bikes and Scooters

The new GST slab also brings good news for two-wheeler buyers.

  • For Bikes up to 350cc: The GST on most bikes and scooters with an engine capacity up to 350cc has been cut from 28% to 18%.

    • The Impact: This change benefits everyday commuters and enthusiasts alike. You can now save on models like the Hero Splendor, Honda Shine, TVS Apache, and even the Royal Enfield Classic 350.

  • For Bikes Above 350cc: Bikes with an engine capacity over 350cc are now subject to a 40% GST rate.

Conclusion

This major revision in GST rates is a positive step for the Indian automotive industry and is expected to drive more sales. With prices on popular cars and bikes dropping, this might be the perfect time to make that long-awaited purchase.

What car or bike are you planning to buy now that the prices have come down? Share your thoughts in the comments!

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