Articles - GST

GST on car for personal use

GST on car for personal use.

Vehicles for personal use such as motor cars, motor vehicles and even bicycles feature GST ranging from 5% to 12%.

 

GST rate applicable to vehicles is 5% on carriages (motorized/non-motorized) for use by disabled persons. The same 5% GST rate also applies to parts/accessories of carriages for use by disabled people.

This rate was introduced at the 31st GST Council Meeting held in December 2018.

 

12% GST on cars and other vehicles

  • Vehicles that are driven by electric motors (including 2 and 3 wheelers)
  • Vehicles driven by fuel cells including hydrogen fuel cell technology
  • Bicycles and other non-motorized cycles including delivery tricycles as well as their parts and accessories
  • Hand propelled vehicles such as rickshaws, hand carts, etc. as well as animal drawn vehicles

18% GST on cars and other vehicles

  • Cars for physically handicapped people (subject to specific terms and conditions)
  • Baby carriages and its replacement parts

28% GST on cars and other vehicles

  • Motor vehicles (petrol or diesel) for the transport of people including racing cars and station wagons irrespective of size*.
  • Motorcycles and mopeds with or without sidecars
  • Parts and accessories of motorcycles/moped including sidecars

GST is applicable at 28% on cars for private use but the compensation cess may differ based on key factors such as the size of the car’s engine and the length of the car. Such specifications are in line with the Motor Vehicle Act, 1988.

 

Also read:-

Tags: GSTGST rates
Ishita Ramani

Ishita Ramani is a young woman entrepreneur and currently the Operations Director at Ebizfiling India Private Limited. In her entire career so far, she has led a team of 50+ professionals like CA, CS, MBAs and retired bankers. Apart from her individual experience on almost every facet of Indian Statutory Compliances, she has been instrumental in setting up operations at Ebizfiling.com! Read about her journey at- https://www.greatcompanies.in/post/ishita-ramani-operation-director-at-ebizfiling-india-pvt-ltd

Leave a Comment

Recent Posts

Changing Your Business Name: Why MSME Registration Doesn’t Allow Name Updates?

Changing Your Business Name: Why MSME Registration Doesn't Allow Name Updates?  Introduction When businesses rebrand, the first question many ask…

9 hours ago

Highlights of the 56th GST Council Meeting held in September 2025

Highlights of the 56th GST Council Meeting held in September 2025  Introduction  The 56th GST Council Meeting, chaired by Union…

10 hours ago

Can we apply for Logo and Wordmark Registration in Single Application?

Can we apply for Logo and Wordmark Registration in Single Application? Introduction Businesses often wonder whether they can register both…

11 hours ago

Compliance Calendar for October 2025

Compliance Calendar for the Month of October 2025 Introduction As October 2025 approaches, it is crucial for businesses, professionals, and…

12 hours ago

Can I Use Different Colour Combinations After Applying Logo as a TM Application? 

Can I Use Different Colour Combinations After Applying Logo as a TM Application?  Introduction When it comes to protecting your…

13 hours ago

FLA Return Filing for NRI Investment via NRO Account: Is It Mandatory?

FLA Return Filing for NRI Investment via NRO Account: Is It Mandatory?  The FLA return NRI NRO investment applicability query…

16 hours ago