GST 2.0: Repair of vehicles will be easy, now 18% tax on all auto parts

GST 2.0: GST 2.0 is going to be implemented in the country from September 22, 2025. Recently, giving relief to consumers, the GST Council has decided to reduce GST rates on many things. In this series, the Central Government has made the GST on motor vehicle parts a uniform 18 percent, which will no longer depend on the Harmonized System (HS) i.e. HS code. In simple language, now whether it is an engine part, a brake or an electrical part, the same tax rate will be applicable on all. This will make repair and maintenance of vehicles easier and economical. Earlier there were different tax rates on parts with different HS codes.

Till now, two tax rates (18% and 28%) were applicable on components used in vehicles. Now everyone has been put in the same slab (18 percent). For consumers this means lower bills. For example, a brake pad set which earlier used to cost Rs 2,000 with 28 per cent GST, may now cost around Rs 1,850. Similarly, there will be savings on battery or AC parts also. This change will encourage vehicle owners for regular maintenance.

Now repair at low cost
Experts believe that this step will promote Make in India and the domestic auto industry. Companies will get help in production and inventory management and there will be stability in parts prices. Car owners will now be able to get repairs done at low cost.

New GST rates applicable from first day of Navratri
Let us tell you that the new GST rates are going to be implemented from the first day of Navratri or 22nd September. Due to this, there will be a big reduction in the prices of food items, TV, AT, fridge and vehicles and they will become cheaper than before. Under the new GST framework, the number of existing tax slabs will be reduced from four – 5%, 12%, 18% and 28% to two – 5% and 18%. Along with this, the government has reduced the tax on many such things to zero. At the same time, 40% tax has been fixed on luxury and sin goods.