New commodity tax rates and services from cars to buses: Check that common questions explain what becomes cheaper and what he does not

In a large batch to make personal movement and agricultural equipment more affordable, the Commodity and Services Tax Council approved on Wednesday to the sharp tax cuts on vehicles and machinery. This announcement was announced by the Minister of Finance of the Federation and the Chairman of the Commodity and Services Tax Board Nermalla Setharmann after the fifty -sixth council meeting.

As of September 22, 2025, goods and services tax on small cars and motorcycles will be reduced to 350 cc and three wheels, buses, trucks and ambulances from 28 % to 18 %.

Common questions about commodity and services tax rates for vehicles and machinery

> What is the average commodity tax and services revised on small gasoline cars, liquefied petroleum gas, compressed natural gas or diesel? What is covered under small cars?
The commodity and services tax rate on all small cars has been reduced from 28 % to 18 %. For the purposes of goods and services tax, small cars mean:

Gasoline, LPG or CNG gasoline cars with a capacity of 1,200 cm and a length of up to 4000 mm.

Diesel cars with a engine capacity of up to 1500 cc and length up to 4000 mm.

> What is the rate of new commodity and services tax on vehicles exceeding 1500 cc or length exceeding 4000 mm? What is the rate of commodity and services tax on benefit vehicles?

All medium and large cars (vehicles exceeding 1500 ° C or 4000 mm) will attract 40 %.

The benefit vehicles (SUVs, MUVS, MPVS, Xuvs) will perform a capacity of 1500 cm, more than 4000 mm long, and rid the ground of 170 mm or more also on GST by 40 %, without stopping.

> What is the rate of commodity and services tax on 3 wheels?
The rate has been reduced from 28 % to 18 %.

> What is the rate of commodity tax and services on buses and vehicles that aim to carry more than 10 people?
Vehicles designed to transport ten or more (HSN 8702) will attract 18 % of the commodity and services tax, a decrease from 28 %.

> What is the rate of commodity and services tax on ambulances?
Created vehicles on ambulances with all the required equipment will attract 18 %, from 28 %.

> What is the rate of goods and services tax on trucks and trucks?
Cargo transport vehicles (HSN 8704) will now attract 18 %, a decrease from 28 %.

> What is the rate of commodity tax and services on trailers and semi -grades of tractors?

Tractors (unlike tractors on the roads for semi-bicycles above 1800 cc) -5 %.

Road tractors for a semi-intermittent company over 1800 cc-18 % (reduced from 28 %).

> What is the rate of commodity and services tax on motorcycles?

Up to 350 cc – 18 %.

Above 350 ° C – 40 %.

> Does 18 % apply to 350 cc of motorcycles as well?
Yes. Only 40 % applies to motorcycles that exceed 350 cc.

> What is the new rate of medium-sized and large cars that attracted earlier 28 % CESS (45-50 % total)?
These will now attract 40 % commodity and services tax with no stopping.

> Has the commodity and services tax rate reduced on bicycles and parts?
Yes, from 12 % to 5 %.

> Why was small agricultural tractors not completely exempted?

To balance relief for farmers while protecting local producers. Full exemption would prevent input tax credit (ITC), and ultimately raise the costs of manufacturers and consumers.