GST rates on small cars and motorcycles up to 350 cc, three-wheelers, buses, trucks, and ambulances has been reduced from 28 percent to 18 percent.
New Delhi: Small cars and entry-level bikes are set to get cheaper as the GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
GST rates on small cars and motorcycles up to 350 cc, three-wheelers, buses, trucks, and ambulances has been reduced from 28 percent to 18 percent.
The GST Council approved limiting slabs to 5 per cent and 18 per cent effective from September 22, the first day of Navaratri.
Petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length would move to the 18 per cent rate from the current 28 per cent.
The GST Council has slashed the tax rate on motor vehicles cleared as fully fitted ambulances, as well as three-wheeled vehicles, from 28% to 18%.
A uniform rate of 18 percent will now apply on all auto parts, said Finance Minister Nirmala Sitharaman on Wednesday evening while announcing the GST rates.
Renewable energy devices, including biogas plants, windmills, solar panels, and solar water heaters, will also see a rate cut from 12 percent to 5 percent