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