{"id":272,"date":"2025-09-08T15:45:23","date_gmt":"2025-09-08T15:45:23","guid":{"rendered":"https:\/\/gyanforest.com\/english\/?p=272"},"modified":"2025-09-08T17:30:11","modified_gmt":"2025-09-08T17:30:11","slug":"new-gst-rates-on-cars-know-how-much-extra-pay","status":"publish","type":"post","link":"https:\/\/gyanforest.com\/english\/new-gst-rates-on-cars-know-how-much-extra-pay\/","title":{"rendered":"New GST Rates On Cars | Know How Much Extra You\u2019ll Pay"},"content":{"rendered":"\n<p>The Government of India has recently updated the new <strong>GST rates on cars<\/strong>, and this change is likely to affect the final price you pay while buying a new vehicle. Whether you are planning to purchase a hatchback, sedan, SUV, or luxury car, it is important to understand how these new GST rates impact different segments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is GST on Cars?<\/h2>\n\n\n\n<p>GST is the tax applied on goods and services in India. For cars, GST is charged along with <strong>compensation cess<\/strong> depending on the type of vehicle. Together, these taxes make up a big portion of the car\u2019s on-road price.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">New GST Rates on Cars<\/h2>\n\n\n\n<p>Here\u2019s a simplified table to help you understand the updated GST rates:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-regular\"><table class=\"has-fixed-layout\"><thead><tr><th>CATEGORY<\/th><th class=\"has-text-align-center\" data-align=\"center\">OLD GST + CESS<\/th><th class=\"has-text-align-center\" data-align=\"center\">NEW GST<\/th><th class=\"has-text-align-center\" data-align=\"center\">REDUCTION<\/th><\/tr><\/thead><tbody><tr><td>Vehicles \u2264 4 m, petrol \u2264 1200 cc<\/td><td class=\"has-text-align-center\" data-align=\"center\">28% +1%<\/td><td class=\"has-text-align-center\" data-align=\"center\">18%<\/td><td class=\"has-text-align-center\" data-align=\"center\">11%<\/td><\/tr><tr><td>Vehicles \u2264 4 m, diesel \u2264 1500 cc<\/td><td class=\"has-text-align-center\" data-align=\"center\">28% + 3%<\/td><td class=\"has-text-align-center\" data-align=\"center\">18%<\/td><td class=\"has-text-align-center\" data-align=\"center\">13%<\/td><\/tr><tr><td>Vehicles &gt; 4 m, 1201-1500 cc<\/td><td class=\"has-text-align-center\" data-align=\"center\">28% +17%<\/td><td class=\"has-text-align-center\" data-align=\"center\">40%<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><\/tr><tr><td>Vehicles &gt; 4 m, &lt; 1501 cc<\/td><td class=\"has-text-align-center\" data-align=\"center\">28% + 20%<\/td><td class=\"has-text-align-center\" data-align=\"center\">40%<\/td><td class=\"has-text-align-center\" data-align=\"center\">8%<\/td><\/tr><tr><td>UVs &gt; 4 m, &lt; 1500 cc, GC &lt; 170 mm<\/td><td class=\"has-text-align-center\" data-align=\"center\">28% + 22%<\/td><td class=\"has-text-align-center\" data-align=\"center\">40%<\/td><td class=\"has-text-align-center\" data-align=\"center\">10%<\/td><\/tr><tr><td>Hybrids \u2264 4m, petrol \u2264 1200 cc\/ diesel \u2264 1500 cc<\/td><td class=\"has-text-align-center\" data-align=\"center\">28%<\/td><td class=\"has-text-align-center\" data-align=\"center\">18%<\/td><td class=\"has-text-align-center\" data-align=\"center\">10%<\/td><\/tr><tr><td>Hybrids, petrol &gt; 1200 cc \/ diesel &gt; 1500 cc<\/td><td class=\"has-text-align-center\" data-align=\"center\">28% +15%<\/td><td class=\"has-text-align-center\" data-align=\"center\">40%<\/td><td class=\"has-text-align-center\" data-align=\"center\">3%<\/td><\/tr><tr><td>Electric Vehicles (all categories)<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><td class=\"has-text-align-center\" data-align=\"center\">5%<\/td><td class=\"has-text-align-center\" data-align=\"center\">&#8212;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>(Note: Rates may vary slightly depending on government notifications and state-level charges like road tax, registration, and insurance.)<\/em><\/p>\n\n\n\n<pre class=\"wp-block-preformatted\"><strong>Also Read :- <a href=\"https:\/\/gyanforest.com\/english\/royal-enfield-scram-411-the-urban-adventure-that-turns-heads\/\">Royal Enfield Scram 411: The Urban Adventure That Turns Heads Starting Price \u20b92.15 Lakh<\/a><\/strong><\/pre>\n\n\n\n<h2 class=\"wp-block-heading\">What Does This Mean for You?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Small car buyers<\/strong> will pay only a little extra, so the impact is minimal.<\/li>\n\n\n\n<li><strong>SUV and luxury car buyers<\/strong> will see the biggest price jump due to higher cess.<\/li>\n\n\n\n<li><strong>Electric vehicle buyers<\/strong> get relief as GST remains at just 5%, making EVs a cost-effective option.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/gyanforest.com\/english\/wp-content\/uploads\/2025\/09\/New-GST-Rates-On-Cars.webp\" alt=\"New GST Rates On Cars\" class=\"wp-image-276\" style=\"width:570px;height:auto\" srcset=\"https:\/\/gyanforest.com\/english\/wp-content\/uploads\/2025\/09\/New-GST-Rates-On-Cars.webp 1024w, https:\/\/gyanforest.com\/english\/wp-content\/uploads\/2025\/09\/New-GST-Rates-On-Cars-300x200.webp 300w, https:\/\/gyanforest.com\/english\/wp-content\/uploads\/2025\/09\/New-GST-Rates-On-Cars-768x512.webp 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Why the Change?<\/h2>\n\n\n\n<p>The government updates GST and cess rates to balance revenue collection and encourage eco-friendly mobility. By keeping <strong>low GST on EVs<\/strong>, the aim is to promote clean and green transport in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final Thoughts<\/h2>\n\n\n\n<p>If you are planning to buy a car in 2025, keep the <strong><a href=\"https:\/\/cbic-gst.gov.in\/gst-goods-services-rates.html\" target=\"_blank\" rel=\"noopener\">new GST rates<\/a><\/strong> in mind. For budget-friendly options, small cars and EVs remain attractive. However, if you are considering SUVs or luxury cars, be prepared for a higher on-road price due to the increased tax burden.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government of India has recently updated the new GST rates on cars, and this change is likely to affect the final price you pay while buying a new vehicle. Whether you are planning to purchase a hatchback, sedan, SUV, or luxury car, it is important to understand how these new GST rates impact different &#8230; <a title=\"New GST Rates On Cars | Know How Much Extra You\u2019ll Pay\" class=\"read-more\" href=\"https:\/\/gyanforest.com\/english\/new-gst-rates-on-cars-know-how-much-extra-pay\/\" aria-label=\"Read more about New GST Rates On Cars | Know How Much Extra You\u2019ll Pay\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":273,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-auto"],"_links":{"self":[{"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/posts\/272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/comments?post=272"}],"version-history":[{"count":2,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/posts\/272\/revisions"}],"predecessor-version":[{"id":277,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/posts\/272\/revisions\/277"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/media\/273"}],"wp:attachment":[{"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/media?parent=272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/categories?post=272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gyanforest.com\/english\/wp-json\/wp\/v2\/tags?post=272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}