Changes in the new GST rates will directly impact the pockets of the general public. This is especially beneficial for middle-class families who aspire to purchase vehicles for their daily needs. Moreover, the government has made significant changes in the transportation sector, reducing the GST rates on many vehicles and auto parts from 28 percent to 18 percent. This decision will directly benefit general consumers as well as logistics companies. The decision will be implemented from September 22nd. Let’s see what all has become cheaper in the new GST rates.
Firstly, let’s talk about tires – now, GST relief has been given on new rubber pneumatic tires (excluding bicycle, rickshaw, and aircraft tires). The GST rates have been reduced from 28 percent to 18 percent. This clearly means that the maintenance cost of these vehicles will now be somewhat lower. Also, GST on transportation motor vehicles carrying goods has been reduced to 18 percent. Vehicles like buses, trucks, and ambulances have also been given tax relief.
Road tractors used to pull semi-trailers and with an engine capacity of more than 1800cc will also have to pay less tax. Now, 18 percent tax will be levied on them. This change will directly provide relief to the logistics and transportation sector, which may also reduce the cost of transporting goods.
If we look at the needs of the family, now vehicles with small engines will be cheaper. For example, cars running on petrol, CNG, and LPG, with an engine capacity of up to 1200cc and a length of up to 4 meters. Not only this, diesel cars up to 1500cc, which are also less than 4 meters in length, have also come under the lower GST slab. This means the burden of buying a car in the hatchback and compact segment will be lighter. A tax of 18 percent will now be levied on cars of both these categories instead of 28 percent.
Another relief for the middle class is that three-wheeler vehicles and motorcycles (with an engine capacity of up to 350cc, such as scooters and mopeds) are also going to be cheaper. This news will directly please families in small towns and cities, where people depend on two-wheelers and three-wheelers for daily commuting.
Moreover, ambulances, which come from the factory with all the necessary medical fittings, have also had their taxes reduced. This will affect the health sector, and it is expected that patients will get cheaper ambulance services. Also, hybrid vehicles (petrol-diesel + electric motor) have also come under the relief category. This means that in the future, the prices of environmentally friendly vehicles can be a little more affordable. Tax on both types of compact hybrid cars will be 18 percent.