Mitali
Quick Summary
GST 2.0 has made various changes to tax rates on vehicles, with promises of benefits to consumers.
The GST rate changes vary significantly across different vehicle categories:
| Vehicle Category | GST+Cess (Old) | New GST Rate |
| Two-Wheelers up to 350cc Engine | 28% | 18% |
| Two-Wheelers >350cc Engine | 31% | 40% |
| Three-Wheeled Vehicles | 28% | 18% |
| Passenger Vehicles (Petrol, CNG, Diesel) ≤ 4m length | 28-31% | 18% |
| Passenger Vehicles - SUVs (>4m in length) | 43-50% | 40% |
| Commercial goods & Passenger Vehicle | 28% | 18% |
| Tractor (except road tractors of >1800cc engine) | 12% | 5% |
| Tractor (road tractors) | 28% | 18% |
| EV | 5% | 5% |
| Fuel Cell | 12% | 5% |
Rules For Advance bookings
The GST rate is determined at the time of delivery, when the supply is considered to be made, not at the time of booking or advance payment
- If an individual paid only a partial booking amount before 22-09-25 but the car delivery happens on or after the 22nd, the invoice will be generated after the new GST rate applies. Which means the balance payment will be calculated with the reduced GST, so the customer will automatically pay less at final settlement.
- If the full payment is made earlier but delivery is after 22nd, refund must be given as invoice date decides tax rate.
- If delivery was before 22nd September 2025, no refund is possible.
Refunds will apply only for vehicles delivered after the new GST rates, not for those already purchased.
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