Wagon R or Scorpio… Big change in vehicle prices from September 22, know which will be cheaper or more expensive?
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New GST slabs are going to be implemented from September 22, which will directly affect the purchase and sale of vehicles. Tax on some vehicles and bikes has been reduced, while premium and big vehicles will now be taxed more. Besides, tractors, autos and green vehicles have also got relief. Let us know about this…
New GST rates will be applicable from September 22. Now only 18% tax will be levied on small cars with petrol engines up to 1200cc and diesel engines up to 1500cc. Earlier, 28% tax was levied on these. This will make it cheaper to buy small cars and cheap bikes.
Now 40% tax will be levied on petrol above 1200cc, diesel above 1500cc and vehicles longer than 4000mm. This includes big sedans, luxury SUVs and imported cars. This means that those who buy premium vehicles will have to spend more money.
Tax on bikes, scooters and mopeds with engines up to 350cc has been reduced to 18%. Earlier, 28% tax was levied on these. This will reduce the burden on the pockets of those buying daily use bikes and scooters.
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Bikes above 350cc, like Royal Enfield 650cc, Harley-Davidson and expensive KTM models, have now come under 40% tax. This means that customers buying premium bikes will now have to pay higher prices.
There is good news for farmers. Now only 5% GST will be levied on tractors and their parts, such as tyres, brakes, radiators and clutches. However, road tractors with high engine capacity have not been included in this.
Tax on auto rickshaws i.e. three-wheelers has been reduced to 18%. Similarly, now 18% GST will be levied on the chassis of trucks and lorries. Earlier there was 28% tax on these. This will provide relief to the transport and logistics sector.
Tax on electric vehicles will remain the same at 5% as before. Small hybrid vehicles will fall in the 18% slab, while large hybrid vehicles will be taxed at 40%. That means there will be no additional burden on EV buyers.
Tax on fuel-cell and hydrogen cars will be only 5%. Earlier, separate cess was levied on luxury cars and SUVs, but now only 40% flat tax will be final. Vehicles with green technology will benefit from this.
