New GST Cars And Bikes Prices Live Blog: The revised Goods and Services Tax (GST) structure, dubbed GST 2.0, came into effect across India today, September 22, coinciding with the first day of Navratri. The new rates apply to all cars, SUVs, motorcycles and scooters, and are expected to bring widespread price changes across the automotive sector.
Major Price Cuts For Compact Cars
Under GST 2.0, cars measuring under 4,000 mm with petrol engines below 1,200 cc or diesel engines below 1,500 cc have moved from the 28% slab to 18%. This represents a significant price reduction for hatchbacks and compact sedans.
SUVs And Larger Cars See Lower Tax Too
Vehicles longer than 4,000 mm with petrol engines above 1,200 cc or diesel engines above 1,500 cc now fall into a 40% tax slab. While this is the highest tier under GST 2.0, it is still lower than the earlier combined rate of 45–50% (28% GST plus 17–22% cess), resulting in modest price cuts for bigger cars and SUVs.
Mixed Impact On Two-Wheelers
Motorcycles and scooters up to 350 cc now attract only 18% GST instead of 28%, reducing prices for mass-market two-wheelers. However, bikes above 350 cc have moved to the 40% slab, making them more expensive.
Electric Vehicles Remain At 5% GST
The tax rate on electric vehicles stays unchanged at 5%. While EV prices remain stable, the reduction in petrol and diesel vehicle prices may widen the price gap between EVs and conventional models.
We’ll continue updating this live blog as manufacturers announce revised prices across their model ranges.
Posted from: 0001-01-01 00:00:00Z2025-09-22 03:57:31Z[]this blog via Microsoft Power Automate.
