Everything you need to know about GST on Commercial Vehicles
January 29, 2022
GST on Commercial Vehicles.
Commercial vehicles such as those designed for carrying passengers, goods or for agricultural use typically feature a GST on car in India and other vehicles are ranging from 12% to 28%. Before going through the GST (Goods and Services Tax) on Commercial Vehicles, Let’s have a quick look on what is Goods and Service Tax.
Table of Content
What is Goods and Service Tax?
The Goods and Services Tax (GST) is a tax imposed on goods and services. It is an indirect tax that has mostly superseded many other indirect taxes in India, such as VAT, services tax, and excise duty. The Goods and Service Tax Act was passed by Parliament on March 29, 2017, and into effect on July 1, 2017. In India, the Goods and Services Tax (GST) is a multi-stage, destination-based tax that is levied on every value addition. GST (Goods and Services Tax) is a single domestic indirect tax law that applies to the entire country.
12% GST on cars and other vehicles
- Tractors except road tractors for semi-trailers with engine capacity exceeding 1800cc
- Self-loading/self-unloading trailers for agricultural purposes
18% GST on cars in India and other vehicles:
- Buses for use as public transport that exclusively operate on Bio-fuels
- Refrigerated motor vehicles
- Special purpose vehicles such as crane Lorries, breakdown Lorries, concrete-mixer Lorries, etc.
- Self-propelled work trucks without handling/lifting equipment are commonly used for the transport of goods over short distances at airports, docks, factories, warehouses, etc.
- Various tractors parts include but are not limited to gearbox assembly, axles, brake assembly, bumpers, clutch assembly, radiator assembly, etc.
28% GST on cars in India and other vehicles
- Road tractors for semi-trailers with engine capacity in excess of 1800cc
- Motor vehicles for transport of 10 people or more (excluding bio-fuel powered public transport buses)
- Motor vehicle for transport of goods (excluding refrigerated motor vehicles)
- Various motor vehicle parts and accessories (excluding various tractor parts)
GST compensation cess of 15% is also applicable over and above applicable GST to commercial vehicles capable of transporting up to 13 people including the driver. This compensation cess is in addition to the GST applicable to the specific vehicle type.
Make your business GST Compliant. Never lose on GST input credit ever. Obtain your GST Registration
Christopher07 Aug 2020
EbizFiling helped us with our Indian subsidiary company formation from start to finish. The customer service, knowledge, technical know how and communication was amazing. The delivery of services were timely and as per schedule. Thanks team and congratulations on the job well done. I recommend EbizFiling to any local or international company that wants to start operations in Incredible India.
Kavita Desai09 Dec 2017
I would give 5 stars for their efficiency and their services.
Nitika Shah01 May 2018
Completely satisfied with their services. Great going Ebizfiling!
May 2, 2023 By Pallavi Dadhich
All you need to know about GST LUT Introduction The Goods and Services Tax (GST) is a value-added tax that is levied on goods and services sold in India. The GST was implemented on July 1, 2017, with the aim […]
April 15, 2023 By Team Ebizfiling
Role of FASTag when goods are transported under GST? Introduction The Goods and Services Tax (GST) has simplified the tax system in India by eliminating multiple layers of taxes. However, compliance with GST regulations in the movement of goods can […]
April 12, 2023 By Team Ebizfiling
GST Forward charge mechanism- All you need to know Introduction The Goods and Services Tax (GST) system has brought significant changes to the taxation regime in India. The GST system has introduced a forward charge mechanism (FCM), which is the […]