How the GST will Impact on the Car Rates - Simplified

With the due date of July 1 for its rollout posing a potential threat, here is some greater clearness on the Goods and Services Tax (GST) and the effect it could have on the costs of cars. Under GST, there will now be four primary vehicle classifications: little cars, huge cars, electric vehicles and half breeds. Most vehicle classifications will fall under a standard 28 percent tax rate, alongside an arrangement to independently demand an extra factor cess on any class.

Therefore, to a great extent, there has been a decrease in taxation no matter how you look at it with the drop extending from 2.25 to 12 percent, contingent upon the category.Hybrids, however, have been kept in the most elevated rate section there is, of 28 percent with an extra 15 percent cess (aggregate of 43 percent), along these lines pulling in an indistinguishable measure of tax from a huge car.But in a move that highlights the administration's push towards electric vehicles, GST has been kept in a tax band of 12 percent, which is 16 percent lower than some other vehicle classification.

Car Body Dimesion Car Engine Capacity Examples Current Tax After GST Difference
Under 4 Meter Petrol Engine less than 1.2 L Nano, Kwid, Swift Dzire, Baleno 31.50% 29% 2.50%
Under 4 Meter Deisel Engine less than 1.5 L Swift Dzire, Ameo, Baleno, etc. 33.25% 31% 2.25%
Under 4 Meter More than 1.2L Petrol and 1.5L Deisel Ecosport 44.70% 43% 1.70%
More than 4 Meter More than 1.2L Petrol and 1.5L Deisel Honda City, Vento, Corolla, E class 51.60% 43% 8.60%
All Suvs NA Creta, Fortuner, XS, Tuscon 55% 43% 12%
Hybrid NA Camry, Prius, 30.30% 43% 12.70%
Electric NA e2o 20% 12% 8%
vivek bansal

vivek bansal

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