{"id":10195,"date":"2025-09-04T04:41:59","date_gmt":"2025-09-04T04:41:59","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/09\/04\/gst-2-0-planning-to-buy-a-car-or-bike-all-you-need-to-know-about-tax-rate-changes-on-vehicles-business-news\/"},"modified":"2025-09-04T04:41:59","modified_gmt":"2025-09-04T04:41:59","slug":"gst-2-0-planning-to-buy-a-car-or-bike-all-you-need-to-know-about-tax-rate-changes-on-vehicles-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/04\/gst-2-0-planning-to-buy-a-car-or-bike-all-you-need-to-know-about-tax-rate-changes-on-vehicles-business-news\/","title":{"rendered":"GST 2.0: Planning To Buy A Car Or Bike? All You Need To Know About Tax Rate Changes On Vehicles | Business News"},"content":{"rendered":"


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This is your last time to buy premium bikes and cars at 28% rate, before it increases to 40%; here’s all you need to know about 56th GST Council meeting’s outcome on auto taxes.<\/h2>\n
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The new GST rates will be effective from September 22, 2025, the first day of Navratri.<\/p>\n<\/figure>\n

GST On Cars & Autos:<\/strong> If you\u2019re planning to buy a new car, bike or even a tractor, the 56th GST Council meeting has just brought some good news for small cars and motorcycles. The government has slashed taxes on smaller vehicles from 28% to 18%. However, the GST rates have been sharply increased for luxury cars, SUVs and high-end motorbikes from 28% to 40%.<\/p>\n

The new GST rates will be effective from September 22, 2025, the first day of Navratri.<\/p>\n

It means those planning to buy luxury cars or premium bikes, the prices are set to increase soon. However, small cars and affordable bikes will get cheaper after September 22, 2025.<\/p>\n

Cars: Small Gets Cheaper, Big Gets Costlier<\/strong><\/p>\n

Petrol, CNG and LPG cars with engine capacity up to 1200cc and length up to 4000 mm will now attract 18% GST, lower from the earlier 28%. Diesel cars with engine capacity up to 1500cc and length up to 4000 mm also get the lower 18% GST rate.<\/p>\n

It means that popular hatchbacks and compact sedans, including Maruti Swift, Hyundai i20, Tata Altroz, and Honda Amaze, might become more affordable.<\/p>\n

Large Cars & SUVs Get Costlier<\/strong><\/p>\n

Cars with engine capacity above 1200cc (petrol\/CNG\/LPG) or above 1500cc (diesel) or length more than 4000 mm will now attract a hefty 40% GST, as compared with 28% earlier.<\/p>\n

It covers bigger sedans, premium SUVs, and imported models. Customers looking at vehicles like Toyota Fortuner, Mahindra XUV700 (higher variants), or imported luxury sedans will face higher costs.<\/p>\n

Bikes: Affordable Motorcycles To Get Cheaper, Premium Bikes To Be Costlier<\/strong><\/p>\n

Motorcycles up to 350cc engine capacity (including mopeds and scooters with auxiliary motors) will now attract 18% GST, down from 28%.<\/p>\n

This covers most mass-market motorcycles and scooters, making them cheaper for everyday riders.<\/p>\n

Motorcycles Above 350cc To Get Costlier<\/strong><\/p>\n

Motorcycles above 350cc, including Royal Enfield 650cc, Harley-Davidson, or premium KTM models, will now attract 40% GST. So, premium bike enthusiasts will have to shell out more.<\/p>\n

Tractors & Rural Vehicles<\/strong><\/p>\n

Tractors (except very high engine capacity road tractors), along with tractor parts like tyres, brakes, radiators and clutches, now attract just 5% GST. This is a major relief for farmers and rural buyers.<\/p>\n

Three-wheelers (autos) also see GST reduced to 18%.<\/p>\n

Commercial Vehicles & EVs<\/strong><\/p>\n

Goods transport vehicles (trucks, chassis for lorries, etc.) now come under 18% GST instead of 28%, lowering costs for logistics and fleet operators.<\/p>\n

Electric Vehicles: No Change In Rates<\/strong><\/p>\n

GST on electric vehicles remains the same at 5%. So, Ather, Ola Electric, TVS electric vehicle prices will remain the same. Earlier, there were reports that GST on such vehicles would be hiked to 18%, which have been junked now.<\/p>\n

Hybrids:<\/strong><\/p>\n

Small hybrids (up to 1200cc petrol, 1500cc diesel, under 4000 mm) will attract 18% GST, larger hybrids (bigger engine or longer than 4000 mm) will attract 40% GST.<\/p>\n

However, fuel-cell vehicles (including hydrogen cars) will attract a 5% GST, indicating the government\u2019s push towards clean mobility.<\/p>\n

No Compensation Cess<\/strong><\/p>\n

Unlike earlier when bigger cars and SUVs attracted an additional compensation cess (on top of GST), the Council has decided to simplify the structure. Now, the 40% GST rate itself is comprehensive, and no separate cess will be added.<\/p>\n

GST Rate Changes: What It Means For You?<\/strong><\/p>\n

If you are planning to buy a hatchback, compact SUV, entry-level sedan, or two-wheeler under 350cc; prices are set to drop once companies pass on the benefit.<\/p>\n

However, if you are planning to buy a luxury car, premium SUV, imported sedan, or a big superbike; there will be a hike on prices, maybe after September 22, with 40% GST. So, this is your last time to buy premium bikes and cars at 28% rate, before it increases to 40%.<\/p>\n

Middle ground for commercial buyers and logistics operators. Lower taxes on trucks and CVs could cut transport costs over time.<\/p>\n

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Mohammad Haris<\/a><\/p>\n

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<\/span><\/p>\n<\/div>\n<\/div>\n

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<\/span><\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> GST 2.0: Planning To Buy A Car Or Bike? All You Need To Know About Tax Rate Changes On Vehicles<\/span><\/div>\n
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Last Updated:September 04, 2025, 10:07 IST This is your last time to buy premium bikes and cars at 28% rate, before it increases to 40%; here’s all you need to know about 56th GST Council meeting’s outcome on auto taxes. The new GST rates will be effective from September 22, 2025, the first day of…<\/p>\n","protected":false},"author":1,"featured_media":10196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-10195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=10195"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/10196"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=10195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=10195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=10195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}