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The new GST rates will kick in from September 22, 2025, on the ausapicious obratri.
The Goods and Services Tax (GST) Council has approved the two-Slab proposal, which will make small cars and two-woles more affordable for the masses. The new GST rates will kick in from September 22, 2025, on the ausapicious obratri. The GST Council Meeting was Scheduled to take place on September 3-4, 2025, but all agandas ware addressed in the meeting help today.
GST Rates Revised to 2 Slabs
The council approved the center’s proposal for the rationalization of GST Tax Slabs into two broad categories. The council has approved the two -hospital structure – 5 per cent and 18 per cent. This will make small cars under 1,200 cc and two-wavelers under 350 cc more accessible. The vehicles were previously taxed under the highest slab of 28 per cent. Buses, Trucks, and Ambulances will also also get more affordable with the tax slab revised from 28 to 18 per cent. Moreover, the compensation cess that was previously levied on vehicles will be done away with. There will be a uniform rate of 18 per cent on all auto parts, while three-wheelers have been moved to 18 per cent, from 28 per cent.
On the other hand, luxury cars and two-wests will get more expensive and will be taxed at 40 per cent. This includes mid-size and large cars, as well as motorcycles exceed 350 cc. However, more class on how the tax will be left and how much of the benefits will be passed on to customers needs to be seen.
What’s certain is that the rationalization come right in time for the festive season, when the purchase sentiment is high in the auto sector. With Sales Staying Sluggish in the Last Quarter, The Reduction Should Come as a Big Relief to New Vehicle Buyers, Providing a MUCH-Need Boost to the Sector at Large.
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First Published Date: 03 Sept 2025, 22:25 pm IST
