GST Slash: Cars, SUVs & Parts Set To Get Cheaper From Sep 22

Big savings are coming for car buyers this festive season. In the largest GST reform since 2017, tax rates on cars and auto parts have been slashed. Small cars under 4 metres will now attract just 18% GST, down from 29–31%, while larger cars and SUVs will be taxed at 40% instead of up to 50%. Auto parts, too, will get cheaper with a uniform 18% GST replacing the earlier 28%. The move could lower small car prices by 12% and bigger vehicles by up to 10%. With SIAM welcoming the reform, analysts expect the industry to recover from weak growth. Auto stocks are already rallying, and festive demand is set to accelerate after September 22.