{"id":22116,"date":"2024-10-15T07:53:58","date_gmt":"2024-10-15T02:23:58","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=22116"},"modified":"2024-12-26T12:48:19","modified_gmt":"2024-12-26T07:18:19","slug":"commercial-vehicle-gst-rate","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/commercial-vehicle-gst-rate\/","title":{"rendered":"Know all about Commercial Vehicle GST Rate"},"content":{"rendered":"\n
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Key Takeaways<\/h3>\n\n\n\n
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  • GST Rates:<\/strong> Commercial vehicles face GST rates from 12% to 28%, based on engine capacity and vehicle type.<\/li>\n\n\n\n
  • Reduced Prices:<\/strong> GST has lowered prices for both small and luxury vehicles, boosting affordability.<\/li>\n\n\n\n
  • Tax Credits:<\/strong> Dealers and importers can claim tax credits, improving cost efficiency.<\/li>\n\n\n\n
  • Streamlined Logistics:<\/strong> GST simplifies inter-state transport and reduces paperwork with the e-way bill.<\/li>\n\n\n\n
  • Electric Vehicle Boost:<\/strong> Lower GST on electric vehicles encourages adoption and sustainability.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n

    Goods and Services Tax has created a significant impact on various sectors in India, including the commercial vehicle industry. GST on commercial vehicles not only impacts the purchase, sale and renting of cars but also determines a business’s cost structure. GST subsumed multiple indirect taxes like excise duty, VAT (Value Added Tax), service tax under one head and simplified business compliance.<\/p>\n\n\n\n

    In this blog, we will discuss the commercial vehicle GST rate<\/strong>, the applicable GST rate on cars, the impact of GST on the automobile sector<\/a>, its benefits and many more.<\/p>\n\n\n\n

    What Is Goods and Service Tax?<\/strong><\/h2>\n\n\n\n
    \"What
    <\/figcaption><\/figure>\n\n\n\n

    Goods and Services Tax is an indirect tax in India. Prior to GST implementation in 2017, there existed several other indirect taxes like excise duty, services tax, VAT, etc. GST has subsumed all these taxes under one head, to create a unified national market. It is charged on the final market price<\/a> and the GST rate applies uniformly across India. The four components of GST are CGST, SGST, ITGST and UTGST.<\/p>\n\n\n\n

    When it comes to commercial vehicles, the applicable GST rate ranges between 12% and 28%. It depends on key factors like the engine capacity of the vehicle, the business’s Input Tax credit, and the types of vehicles. Take a look at the table below to understand the applicable GST rate on vehicles:<\/p>\n\n\n\n

    Motor Vehicle Description<\/strong><\/td>GST Rate<\/strong><\/td>Compensation Cess Rates<\/strong><\/td><\/tr>
    Motor vehicles which transport up to 13 people, including the driver<\/td> <\/td>15%<\/td><\/tr>
    Liquified Petroleum Gas (LPG), petrol, compressed natural gas (CNG), motor vehicles of up to 1200cc engine capacity and up to 4000 mm length.<\/td>18%<\/td>1%<\/td><\/tr>
    Motor vehicles of 1500cc engine capacity<\/td> <\/td>17%<\/td><\/tr>
    Motor cars of more than 1500cc engine capacity, like utility vehicles and Sports Utility Vehicles (SUVs)<\/td> <\/td>22%<\/td><\/tr>
    Refrigerated motor vehicles<\/td>18%<\/td> <\/td><\/tr>
    Motor vehicles with a seating capacity of either 10 people or more than that, including the driver. This excludes buses which are used for public transport and a biofuel-powered public transport bus<\/td>28%<\/td> <\/td><\/tr>
    Goods transport vehicle (except refrigerated)<\/td>28%<\/td> <\/td><\/tr>
    Special purpose vehicles<\/td>18%<\/td> <\/td><\/tr>
    Used and old motor cars, electric vehicles, vehicles that are cleared as ambulances<\/td> <\/td>Nil<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Different Rates of Goods and Services Tax on Automobiles<\/strong><\/h2>\n\n\n\n

    Let us discuss the different rates of GST on cars and other vehicles-<\/p>\n\n\n\n

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