Big Relief for Vehicle Owners! Spare Parts Get 10% Cheaper, Service Bills to Drop After GST Slash
Big Relief for Vehicle Owners! Spare Parts Get 10% Cheaper, Service Bills to Drop After GST Slash
Vehicle owners may finally breathe a sigh of relief, as the cost of maintaining cars and bikes is about to become lighter on the pocket. In a significant move under the newly introduced GST 2.0 structure, the government has announced a major reduction in tax rates for auto components. Starting from September 22, all vehicle parts will now fall under a uniform GST slab of 18%, replacing the earlier system where parts were taxed at either 18% or a steep 28%.
For many, servicing a vehicle often brings an unpleasant surprise when the final bill arrives. Despite spending a reasonable amount on labor and repairs, the total amount due often shoots up due to the high taxes on parts—especially those previously taxed at 28%. This category included a wide range of components labeled as “luxury” or “performance” parts, such as brake systems, engine modules, and certain electrical components. That meant nearly 40% of auto parts were unnecessarily expensive.
With the new tax revision, the parts that earlier attracted the 28% GST rate will now be 10% cheaper. The ripple effect of this is expected to directly benefit vehicle owners. A reduced cost of spare parts translates into lower servicing bills, making routine maintenance and repairs more affordable for the average consumer.
Industry experts and stakeholders are welcoming this decision with open arms. According to manufacturers and auto service providers, the new slab brings a much-needed boost to the overall ecosystem. It not only reduces the total cost of ownership for customers but also offers a push to the organized service sector. For years, the disparity in tax rates led many people to opt for cheaper, unorganized service centers, often compromising on quality.
Now, with more affordable parts, the temptation to turn to counterfeit or low-grade spares may also drop. This is likely to help reduce the circulation of substandard parts in the market—an issue that has long plagued the Indian automobile sector. The change is also expected to bolster local businesses, especially small and medium enterprises (MSMEs) that form the backbone of the country’s auto component industry.
In short, whether you’re heading in for routine maintenance or facing an unexpected repair, your vehicle service experience is about to get a lot less stressful—and a little easier on your wallet. Lower costs, better quality, and a stronger domestic industry make this GST change a win across the board.
