CA breaks down ₹12.9 lakh car bill, finds ₹6 lakh in taxes, calls it a silent middle-class hit
Thomas used the breakdown to highlight how steep taxation is pricing the middle class out of car ownership.
- Jun 22, 2025,
- Updated Jun 22, 2025 8:46 PM IST
A LinkedIn post by CA Arvind C Thomas is drawing attention for exposing how nearly ₹6 lakh in taxes can pile onto the cost of a new car in India — turning a middle-class purchase into a financial stretch.
“Are we buying a car or just helping the government fill its coffers?” CA Arvind C Thomas asked, breaking down an actual invoice to reveal how taxes quietly add nearly 46% to a vehicle’s price.
The car’s base cost was ₹12.91 lakh. After a minor discount, the taxable amount came to ₹12.80 lakh. From there, the buyer was hit with a 28% GST adding ₹3.58 lakh, a 17% Compensation Cess of ₹2.17 lakh, and a 1% TCS charge of ₹18,573.
That’s close to ₹6 lakh in taxes alone — and it doesn’t include road tax, registration, insurance, or fuel.
Thomas used the breakdown to highlight how steep taxation is pricing the middle class out of car ownership. “With taxes this high, upgrading a vehicle feels more like a luxury than a necessity,” he wrote. “The middle class keeps paying silently, and no one bats an eye.”
The post has sparked conversations around the true cost of owning a car in India — and the quiet burden carried by ordinary buyers.
A LinkedIn post by CA Arvind C Thomas is drawing attention for exposing how nearly ₹6 lakh in taxes can pile onto the cost of a new car in India — turning a middle-class purchase into a financial stretch.
“Are we buying a car or just helping the government fill its coffers?” CA Arvind C Thomas asked, breaking down an actual invoice to reveal how taxes quietly add nearly 46% to a vehicle’s price.
The car’s base cost was ₹12.91 lakh. After a minor discount, the taxable amount came to ₹12.80 lakh. From there, the buyer was hit with a 28% GST adding ₹3.58 lakh, a 17% Compensation Cess of ₹2.17 lakh, and a 1% TCS charge of ₹18,573.
That’s close to ₹6 lakh in taxes alone — and it doesn’t include road tax, registration, insurance, or fuel.
Thomas used the breakdown to highlight how steep taxation is pricing the middle class out of car ownership. “With taxes this high, upgrading a vehicle feels more like a luxury than a necessity,” he wrote. “The middle class keeps paying silently, and no one bats an eye.”
The post has sparked conversations around the true cost of owning a car in India — and the quiet burden carried by ordinary buyers.