GST Reforms: Small Cars and Bikes Likely to Become Cheaper

Proposed GST reforms are expected to bring relief to those looking to purchase small cars. The government is considering differentiating tax rates for small and large cars. According to sources, small cars, currently subject to 28 percent GST and a 1-3 percent cess, may fall under the 18 percent bracket in the new system. After removing the 28 percent rate, higher taxes, potentially exceeding 40 percent, could be imposed on large luxury cars and SUVs. The reforms also suggest potential benefits for motorcycle buyers.