Planning to buy a car or bike this Diwali? Here's how much GST you have to pay

By: Mainak Das
| Updated on: 04 Sept 2025, 07:01 am Share via: Almost all the passenger vehicles in India will now be taxed at a lower GST rate. Almost all the passenger vehicles in India will now be taxed at a lower GST rate. View Personalised Offers on Check Offers The Goods and Services Tax (GST) Council, on Wednesday, has revised tax rates on certain categories of vehicles. With this revision, most of the vehicles across different segments will now be cheaper than before. The new GST rates will be enforced from September 22. The move comes right before the festive season and will be enforced during the Navratri, which is one of the most prosperous times of the year for any automaker to register bolstered sales numbers. The GST Council has reduced the GST slabs. The GST 2.0 regime has two slabs – five per cent and 18 per cent. Besides that, there is a special slab of 40 per cent, which is for luxury goods. If you are planning to buy a car, motorcycle, or scooter this festive season, here is a quick guide for you: which models will attract how much GST? Smaller cars become cheaperWith the GST revision, the small cars powered by petrol, CNG or LPG, having an engine up to 1200 cc and a size of up to 4000 mm, will see 18 per cent tax, down from the 29 per cent tax slapped currently, which includes 28 per cent GST and one per cent cess. Popular models such as Maruti Suzuki Alto K10, Maruti Suzuki Swift, Hyundai i20, Renault Kwid, Tata Tiago, etc., will be cheaper with this move. Diesel cars, with up to 1500 cc engines and sized up to 4,000 mm, have become cheaper than before. These models will now be taxed at 18 per cent, down from 31 per cent, which includes 28 per cent GST and three per cent cess. Popular cars like the Tata Altroz and Hyundai Venue, among others, will be cheaper with this move. Bigger cars mean bigger taxThe bigger petrol and diesel cars will be taxed at a higher tax rate compared to their smaller siblings. However, even with the higher tax rate, the GST slapped on them will be lower than the current regime. The petrol cars with an engine capacity between 1200 cc and 1500 cc will see 40 per cent GST, down from the current 45 per cent, which includes 28 per cent GST and 17 per cent cess. Models such as Maruti Suzuki Brezza, Maruti Suzuki XL6, Hyundai Creta, and Honda City will be positioned in this slab. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 04 Sept 2025, 07:01 am IST
Source: hindustantimes.com