GST on Cars and Bikes: Will Your Favourite Vehicle Become Cheaper or Costlier? Check Full List Here
GST on Cars and Bikes: Will Your Favourite Vehicle Become Cheaper or Costlier? Check Full List Here
The Central Government has proposed a major revision in GST rates on cars and bikes, which could make some vehicles cheaper while others may get costlier. The final decision will be taken in the GST Council meeting scheduled on September 3 and 4, 2025 in New Delhi. The auto industry is closely watching these developments as they may significantly impact vehicle prices across segments.
Vehicles Likely to Become Cheaper (GST 28% → 18%)
- Ambulances and motor vehicles designed to carry 10 or more passengers.
- Petrol, LPG, and CNG cars with engines up to 1200 cc and length below 4000 mm.
- Diesel cars with engines up to 1500 cc and length below 4000 mm.
- Three-wheelers across categories.
- Motorcycles up to 350 cc engine capacity.
- Auto parts, seats, and accessories.
Vehicles Likely to Become Costlier (GST 28% → 40%)
- Station wagons, racing cars, and luxury vehicles with engines above 1200 cc and length over 4000 mm.
- Private jets, helicopters, and small aircrafts.
- Boats and other luxury water vessels.
- Motorcycles with engine capacity above 350 cc.
If approved, these changes will reshape the Indian automobile pricing structure – making small and mid-segment vehicles more affordable, while luxury cars, high-end bikes, and private aircraft may see sharp price hikes.
Disclaimer
This article is based on the proposals submitted for consideration in the upcoming GST Council meeting. The final GST rates on cars, bikes, and other vehicles will be confirmed only after the Council’s official decision. Readers are advised to check the official GST notifications for accurate and updated information before making any purchase decisions.
