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
