Goods and Services Tax (GST) currently applies to most goods and services in India including motor vehicles. GST on cars in India is applicable on multiple slab rates of 5%, 12%, 18%, and 28%. The most relevant GST rate on cars is 28% that applies to motor vehicles including those for personal as well as commercial use. Additionally, a compensation cess of up to 22% may be levied on cars in addition to the 28% GST that is applicable. Hence, the maximum rate effectively can increase to as high as 50% in some cases.
GST rates have been defined for used cars as well. Recently in the 36th GST council meeting, it was decided to reduce rates on electric cars to 5%, which is seen as a drastic boost to the automobile industry and electric vehicles in specific.
GST on Cars for Personal Purpose.
GST Rate on Electric Vehicles and Electric Cars.
GST Compensation Cess on Cars.
Income Tax Department Cracks Down on Fake Party Fraud Introduction The has intensified scrutiny on income tax returns that show…
GSTR-5A Explained: What It Is and Why It Matters? Introduction When people hear the word GST, they usually assume it…
What is UDIN? Everything You Need to Know About UDIN Number Begin with, If you have ever submitted a document…
Essential compliance knowledge every startup coach should know Introduction Startup coaches and mentors play a powerful role in a founder’s…
How can mentors add value by simplifying legal jargon? To Begin with, At some point in every startup journey, legal…
Should incubators guide founders on cross-border company setup? To Start with, Startup incubators today do much more than provide office…
Leave a Comment