The GST Bachat Utsav began on the 22nd of September as the Narendra Modi government slashed GST rates in many sectors, benefiting citizens across the country. The next-generation GST reforms are providing a significant boost to India’s automobile sector by making vehicles more affordable for citizens. The tax rates on two-wheelers with engines below 350cc have been reduced from 28 per cent to 18 per cent.
Similarly, petrol cars up to 1200 cc and diesel cars up to 1500 cc are now taxed at 18 per cent. Meanwhile, tractors below 1800cc are now attracting 5 per cent GST. Under the new tax structure, buses, trucks, three-wheelers, and auto parts are part of 1the 8 per cent tax slab, making transport and repairs more affordable. The new reforms are lowering the prices of vehicles and also boosting demand while creating growth opportunities in the automobile industry.
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