GST Car SUV Explainer: After the decision of the GST Council, here is the new GST structure on your favorite SUV and car

News Topical, Digital Desk : In the 56th GST Council meeting, the tax structure on cars, SUVs and two-wheelers has been completely changed. The new decision will have a direct impact on the prices of vehicles and the companies in the auto sector.

What happened? Earlier,

small cars (Petrol/CNG/LPG ≤1200cc, ≤4000mm) used to attract 28% GST, now it has been reduced to 18%. Small diesel cars (≤1500cc, ≤4000mm) also used to attract 28% GST, now it has been reduced to 18%. Three-wheelers (Passenger/Cargo) used to attract 28% GST, now it has been reduced to 18%. Tractors (Non-Road Use) used to attract 12% GST, now it has been reduced to 5%. Passenger buses (≥10 persons) also used to attract 28% GST, now it has been reduced to 18%. Hybrid small cars (≤1200cc Petrol/≤1500cc Diesel) used to attract 28% GST, now it has been reduced to 18%. Now let's talk about those which are increasing... What became expensive Hybrid big cars (>1200cc petrol />1500cc diesel, >4000mm) Earlier 28% GST was levied. Now 40% GST will be levied on them. General cars and SUVs (not in the small category) Earlier 28% GST was levied on them. Now 40% GST will be levied on them. Big motorcycles (>350cc) Earlier 28% GST was levied on them. Now 40% GST will be levied on them. Impact for investors Positive impact- Small car and three-wheeler manufacturers like Maruti Suzuki, Tata Motors, M&M will benefit. Demand for companies in the tractor and bus segment (M&M, Escorts, Ashok Leyland) may increase. Negative impact- SUV and premium car manufacturers (Toyota, Hyundai, Kia, MG, luxury brands) may come under pressure. In the bike segment, Royal Enfield (Eicher Motors) faces a setback as >350cc bikes are taxed at 40%. Overall, this GST reform will boost rural and mid-segment demand but put pressure on luxury and premium vehicles. The new GST bracket in which each brand's car will fall depends on the size, engine capacity and segment of the vehicle. Below are the slabs according to the popular models of major brands. 18% GST bracket (small cars) After the new decision- Maruti Suzuki: Swift, Alto, WagonR, Dzire, Baleno, Celerio (All < 4 metres, Petrol ≤1200cc, Diesel ≤1500cc) Hyundai: Grand i10 Nios, Aura, Exter Tata: Tiago, Tigor, Punch Kia: Sonet (some variants), Seltos (smaller 1.5L petrol/diesel variants) Renault: Kwid, Triber Nissan: Magnite (smaller engine variants) 40% GST bracket (large & luxury cars/SUVs) Hyundai: Creta, Tucson, Alcazar (most variants) Kia: Seltos (1.5L Turbo), Carnival Mahindra: XUV300 (large engine variants), XUV700, Thar, Scorpio-N Tata: Harrier, Safari MG: Hector, Gloster Toyota: Innova Crysta, Fortuner Skoda: Octavia, Kodiaq Honda: City (some variants), Elevate, Amaze (larger engine variants) Volkswagen: Virtus, Taigun Jeep: Compass, Meridian.

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