Proposed GST rate tweaks on automobiles to end classification disputes
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) In upcoming sweeping reforms, the GST on automobiles – currently in the highest tax bracket – will be restructured to resolve classification disputes related to engine capacity and vehicle size, ultimately benefiting the common man, according to government sources.
Presently, automobiles are taxed at 28 per cent, which is the highest GST slab. A compensation cess, ranging from 1 to 22 per cent, is levied on top of this rate, depending on the type of vehicle.
The total tax incidence on cars, depending on engine capacity and length, ranges from 29 per cent for small petrol cars to 50 per cent for SUVs.
Electr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =