{"id":54934,"date":"2025-08-18T13:03:40","date_gmt":"2025-08-18T07:33:40","guid":{"rendered":"https:\/\/caronphone.com\/news\/?p=54934"},"modified":"2025-08-21T16:12:26","modified_gmt":"2025-08-21T10:42:26","slug":"car-gst-2-0-india-2025-what-could-change-for-small-cars-suvs-evs","status":"publish","type":"post","link":"https:\/\/caronphone.com\/news\/car-gst-2-0-india-2025-what-could-change-for-small-cars-suvs-evs\/","title":{"rendered":"Car GST 2.0 India 2025 \u2013 What Could Change for Small Cars, SUVs & EVs"},"content":{"rendered":"

\"Car <\/span><\/p>

If you have been waiting for a first car<\/a>, Car GST 2.0 India might be the nudge you needed. The government is weighing a simpler two-slab GST that could lower taxes on entry-level cars. Early talk points to relief for hatchbacks, while big cars keep a higher bracket. None of this is final yet, but the direction looks clear and consumer friendly.<\/span><\/p>

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What is Car GST 2.0 India proposing?<\/span><\/h2>

\"Car
In plain terms, the Centre is considering moving to two principal GST slabs of 5% and 18%, with a special 40% rate for sin and luxury items. <\/span><\/p>

Within autos, small cars may shift from the current 28% GST plus cess to a flat 18%. Larger cars could move to a special 40% rate, with extra levies considered to keep the overall burden similar to today\u2019s 43\u201350% range. EVs<\/a> are expected to stay at 5%.<\/span><\/p>

Right now, India\u2019s car GST rate effectively works like this: small petrol cars face about 29% in total (28% GST plus 1% cess), small diesels about 31%, while SUVs can touch 50% with cess. <\/span><\/p>

The proposed modification would cut mass-market taxes quite sharply, especially for hatchbacks and compact sedans.<\/span><\/p>

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