The commodity and services tax decreased to 18 % on most large vehicles, bikes and four -wheel drive vehicles: Details inside

The latest GST repair tax rates in India on most cars and wheels from 28 % to 18 % from September 22-but excellent buyers can push more with high-end models move to a new slide of 40 %.

The prices of the starting vehicles and the average level will decrease sharply after the decision of the commodity and services tax council to reduce the commodity and services tax on most cars. Maruti Suzuki Alto, Hyundai Grand i10 and Tata Tiago – which ranged from $ 5 to $ 7 – will witness 8-10 % prices, which increases $ 70,000.

Both the two wheels will benefit up to 350 cm, including the best -selling books like Honda Shine and Yamaha FZ, TVS Apache and Bajaj Pulsar, of low tax. It can mean a 10 % reduction on a $ 1 bike and savings of $ 10,000.

But the tax lounge comes with a warning: luxury cars, large four -wheel drive vehicles and motorcycles that exceed 350 cm cube may attract commodity and services tax reaches 40 %. This shift may lead to high prices for models such as Royal enfield 650CC, KTM 390 and Harley Davidson, with an expected increase of 10-12 % or more in road prices.

For example, Rurawi Royal Infield 650, for example, cross the $ 4 sign. On the contrary, classic 350, which remains below the 350CC threshold, may decrease from $ 2.25 per cde to $ 2.05 per cde. Medium-sized sedan cars with an area of ​​$ 15 may benefit slightly from Lakh, with a 3-5 % reduction in price reduction to 45,000-75,000 dollars in savings.

While budget buyers will benefit more than reduce commodity and services tax, this step can curb enthusiasm in the excellent part. As of September 22, the reform aims to make personal movement more affordable for the ambitious middle class while continuing to extract a higher tax than luxury consumption.