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Auto stocks like Tata Motors, Maruti Suzuki, Hyundai Motor India, Bajaj Auto, TVS Motor Company, and Hero MotoCorp will remain in focus today, Thursday.
GST on entry-level cars, tractors, hybrids (small engine) have been cut to 18%, to boost rural and middle-class demand.
In a bonanza for people ahead of Diwali, the government has reduced GST on small vehicles less than 1500cc and 4000 mm (four-wheelers) and below 350cc (two-wheelers) from 28% to 18%. Those above 1500cc and 4000 mm cars will also get benefitted as 3% compensation cess has been scrapped. Stocks like Tata Motors, Maruti Suzuki, Hyundai Motor India, Bajaj Auto, TVS Motor Company, and Hero MotoCorp will remain in focus today, Thursday.
However, GST on motorcycles of engine capacity exceeding above 350cc has been increased to 40%. Eicher Motors (Royal Enfield), M&M (SUVs), luxury car importers like Mercedes, BMW will be affected.
GST on electric vehicles remains the same at 5%. So, Ather Energy and Ola Electric will remain in focus. Earlier, there were reports that GST on such vehicles would be hiked to 18%.
Basically, GST on entry-level cars, tractors, hybrids (small engine) have been cut to 18%, to boost rural and middle-class demand.
Mahindra & Mahindra (M&M) and Escorts Kubota will also remain in focus today.
56th GST Council Meeting
The 56th meeting of the GST Council began here on Wednesday and it considered multiple scenarios for GST reductions.
The GST Council also cleared the Centre’s proposal to streamline the indirect tax structure into a dual slab of 5% and 18%, with a special 40% slab earmarked for sin and luxury goods. This overhaul will replace the existing four major slabs — 5%, 12%, 18%, and 28% — with a simplified two-rate system. Under the new framework, essential or “merit” goods will be taxed at 5%, while most goods and services will fall under the 18% standard rate.
It also cut GST on a large number of daily-use products, from groceries and medicines to cement and small cars. At the same time, sin goods and luxury products will become significantly more expensive as the GST Council raised rates on tobacco, fizzy drinks and high-end vehicles.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, also decided to exempt health and life insurance premiums from the levy of goods and services tax (GST), the Union finance minister announced on Wednesday.
The new rates will be effective from September 22, 2025, the first day of Navratri.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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