GST for cars & 2 wheelers fixed at 28% plus cess; All details inside

Passenger cars will be taxed under the highest slab as per the GST council meet on 18-05-2017.

Standard GST rate on motor vehicle will be 28% (to be divided in SGST and CGST)

Over and above standard GSR rates, Compensation Cess on motor cars would be levied, rate for which are described below.

Motor vehicles (10>persons<13 15%
Small cars (Length < 4m; Petrol < 1200cc) 1%
Small cars (Length < 4m; Diesel < 1500cc) 3%
Mid segment Cars (engine <1500cc) 15%
Large Cars (engine >1500cc) 15%
Sports utility vehicles (Length>4 m; engine>1500cc; ground clearance >170mm) 15%
Mid segment Hybrid cars (engine<1500cc) 15%
Hybrid motor vehicles >1500cc 15%
Hydrogen vehicles based on fuel cell tech>4m 15%
Motorcycle (engine >350cc) 3%

Depending on the states, cars may become expensive or cheaper, but luxury cars will be less expensive overall.

We will update this post as we get more details

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