How the GST will Impact on the Car Rates - Simplified

With the due date of July 1 for its rollout posing a potential threat, here is some greater clearness on the Goods and Services Tax (GST) and the effect it could have on the costs of cars. Under GST, there will now be four primary vehicle classifications: little cars, huge cars, electric vehicles and half breeds. Most vehicle classifications will fall under a standard 28 percent tax rate, alongside an arrangement to independently demand an extra factor cess on any class.

Therefore, to a great extent, there has been a decrease in taxation no matter how you look at it with the drop extending from 2.25 to 12 percent, contingent upon the category.Hybrids, however, have been kept in the most elevated rate section there is, of 28 percent with an extra 15 percent cess (aggregate of 43 percent), along these lines pulling in an indistinguishable measure of tax from a huge car.But in a move that highlights the administration's push towards electric vehicles, GST has been kept in a tax band of 12 percent, which is 16 percent lower than some other vehicle classification.

Car Body Dimesion	Car Engine Capacity	Examples	Current Tax	After GST	Difference
Under 4 Meter	Petrol Engine less than 1.2 L	Nano, Kwid, Swift Dzire, Baleno	31.50%	29%	2.50%
Under 4 Meter	Deisel Engine less than 1.5 L	Swift Dzire, Ameo, Baleno, etc.	33.25%	31%	2.25%
Under 4 Meter	More than 1.2L Petrol and 1.5L Deisel	Ecosport	44.70%	43%	1.70%
More than 4 Meter	More than 1.2L Petrol and 1.5L Deisel	Honda City, Vento, Corolla, E class	51.60%	43%	8.60%
All Suvs	NA	Creta, Fortuner, XS, Tuscon	55%	43%	12%
Hybrid	NA	Camry, Prius,	30.30%	43%	12.70%
Electric	NA	e2o	20%	12%	8%