GaadiKey
  • Bikes
    • Hero
    • Honda
    • TVS
    • Bajaj
    • Suzuki
    • Royal Enfield
    • Yamaha
    • Ather
    • KTM
    • Aprilia
    • Vespa
    • Harley Davidson
    • BMW
    • Kawasaki
    • Ducati
    • Yezdi
    • Ampere
  • Cars
    • Maruti Suzuki
    • Tata
    • Hyundai
    • Mahindra
    • Toyota
    • Kia
    • Honda
    • MG
    • Renault
    • Volkswagen
    • Nissan
    • Skoda
    • Citroen
    • Jeep
    • Audi
    • BMW
    • Mercedes-Benz
    • Lexus
    • Volvo
    • Isuzu
    • BYD
  • Bike Reviews
  • Car Reviews
  • Photos
  • Contact
  • Best Bikes 2025
    • Best Motorcycles 2025
    • 2025 Hero Splendor+ XTEC 2.0
    • 2025 Royal Enfield Classic 350
    • 2025 Hunter 350
    • 2025 Royal Enfield Scram 440
    • 2025 Royal Enfield Classic 650
    • Best Scooters 2025
    • 2025 Honda Activa 6G
    • 2025 TVS Jupiter
    • 2025 Suzuki Access
    • Best Electric Scooters 2025
    • 2025 Suzuki e-Access
    • 2025 Honda Activa e:
    • 2025 Honda QC1
  • Best Cars 2025
    • 2025 Tata Curvv EV
No Result
View All Result
GaadiKey
No Result
View All Result
Home Auto Industry

GST rates for Automobile Sector in line with Expectations: ICRA

Chethan Thimmappa by Chethan Thimmappa
May 19, 2017
in Auto Industry
0
159
VIEWS
Share on WhatsappShare on FacebookShare on Twitter

GST rates for Automobile Sector in line with Expectations: ICRA

The GST Council in its 14th meeting held yesterday finalized the GST across all categories of goods including automobiles. In line with expectations, the base GST rates for the automobile segment have been set at 28%, which is broadly in line with overall indirect tax rates at present. However, in addition to the base rate, the Government has also proposed to levy a cess of 1% and 3% on small cars with petrol and diesel engines, respectively. Considering GST will subsume infrastructure-cess currently levied on domestic passenger vehicle industry, proposed tax rate for small car is likely to be price neutral. Bigger sedans (engine size > 1,500cc and length >4,000 cm) and SUVs (engine size > 1,500cc and ground clearance > 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%.

As per Subrata Ray, Senior Group Vice President – ICRA Limited, the prices of relatively price sensitive small cars may increase marginally post GST, while OEMs would pass on the benefit of lower taxes on Bigger Vehicles and SUVs to customers.

He further mentioned that GST rates are likely to be almost neutral for the Commercial Vehicle and Two Wheeler and would marginally increase for Three Wheelers as it didn’t attract additional NCCD earlier.

Nonetheless with the implementation of uniform taxation across the country, the road logistic sector will see inherent advantages with easing out of various bottlenecks and complexities involved in transportation. According to Mr. Ray, the automobile sector will also see some benefits by virtue of input tax credit norms. Some of the common examples include:

  • a) service tax paid on certain inputs such as rent, IT, freight etc. and
  • b) lower tax credit on outsourcing activities etc.

You can add more to this story by commenting below. 

Chethan Thimmappa

Chethan Thimmappa

I cover latest automobile news in India with special focus on cars and bikes. Please send me an email to reach@gaadikey.com for any enquiries.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent News

2025 Dominar

2025 Bajaj Dominar Launched: Ride Modes, GPS Mount & Pricing

July 4, 2025
hyundai 1.1 million Sunroof cars sold in last 5 years 2020-2025

Every 2nd Hyundai Now Features a Sunroof – 1.1M Sunroof Cars sold

July 4, 2025
Skoda Auto Volkswagen 5 lakh Production milestone

Skoda Auto Volkswagen India Hits 500,000 Production Milestone

July 4, 2025
Ferrari Amafi in Green Color

Ferrari Amalfi Unveiled: 640HP V8 Grand Tourer Replaces Roma

July 4, 2025
Awesome Toyota Service Campaign

Toyota brings “Awesome Service Campaign” in South India

July 3, 2025
All New TVS Jupiter Updated 2025 Model Design Review

TVS Records 4,02,001 unit sales in June 2025

July 3, 2025

Search this Website

No Result
View All Result

About

GaadiKey

GaadiKey blog is a one stop portal for all the latest in the automobile industry. We are a bunch of people who are passionate about bikes and cars. We share the experience, reviews and stuff connected to Gaadis.

Contact

  • Contact us

Best Cars in 2025

  • 2025 Toyota Hyryder
  • 2025 Grand Vitara
  • 2025 Maruti Fronx
  • 2025 Maruti WagonR
  • 2025 Tata Punch
  • 2025 Mahindra XUV 3XO
  • 2025 Hyundai Creta
  • 2025 Toyota Taisor
  • 2025 Tata Curvv EV
  • Tata Harrier EV

Best Bikes in 2025

  • 2025 Royal Enfield Classic 350
  • 2025 Hunter 350
  • 2025 Royal Enfield Scram 440
  • 2025 Royal Enfield Classic 650
  • 2025 Hero Splendor+ XTEC 2.0
  • 2025 Honda Activa 6G
  • 2025 TVS Jupiter
  • 2025 Suzuki Access
  • 2025 Suzuki e-Access
  • 2025 Honda Activa e:
  • 2025 Honda QC1

© 2025 GaadiKey - Prime GaadiKey.

No Result
View All Result
  • Bikes
    • Hero
    • Honda
    • TVS
    • Bajaj
    • Suzuki
    • Royal Enfield
    • Yamaha
    • Ather
    • KTM
    • Aprilia
    • Vespa
    • Harley Davidson
    • BMW
    • Kawasaki
    • Ducati
    • Yezdi
    • Ampere
  • Cars
    • Maruti Suzuki
    • Tata
    • Hyundai
    • Mahindra
    • Toyota
    • Kia
    • Honda
    • MG
    • Renault
    • Volkswagen
    • Nissan
    • Skoda
    • Citroen
    • Jeep
    • Audi
    • BMW
    • Mercedes-Benz
    • Lexus
    • Volvo
    • Isuzu
    • BYD
  • Bike Reviews
  • Car Reviews
  • Photos
  • Contact
  • Best Bikes 2025
    • Best Motorcycles 2025
    • 2025 Hero Splendor+ XTEC 2.0
    • 2025 Royal Enfield Classic 350
    • 2025 Hunter 350
    • 2025 Royal Enfield Scram 440
    • 2025 Royal Enfield Classic 650
    • Best Scooters 2025
    • 2025 Honda Activa 6G
    • 2025 TVS Jupiter
    • 2025 Suzuki Access
    • Best Electric Scooters 2025
    • 2025 Suzuki e-Access
    • 2025 Honda Activa e:
    • 2025 Honda QC1
  • Best Cars 2025
    • 2025 Tata Curvv EV

© 2025 GaadiKey - Prime GaadiKey.