Taxes on cars in india

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Hello Guys last time I explained what is GST and current taxes in India. Today I will explain taxes on cars. First the original taxes then the change on taxes after GST.

Excise Duty on Vehicles

Vehicle CategoryExcise Duty %
Small cars12.5%
Length >4m but engine capacity less than 1500cc24%
Length >4m and engine capacity more than 1500cc27%
SUVs/MUVs (length >4m, engine capacity >1500cc and Ground clearance >170mm)30%
Hybrid cars12.5%
Specified components of Hybrid vehicles6%
Electric cars, Buses, 2W & 3W6%
Specified components of Electric vehicles6%
Buses12.5%
Trucks12.5%
Three wheelers12.5%
Two wheelers12.5%

Import Duty on Imported Vehicle

Criteria  / ApplicabilityImport Duty in %
Used car import125%
Cars CBUs whose CIF value is more than $ 40,000
or Petrol Engine > 3000 CC
or Diesel engine > 2500 CC
100%
Cars CBUs whose CIF value is less than $ 40,000
and Petrol Engine < 3000 CC
and Diesel engine < 2500 CC
60%
Two-wheeler CBUs with engine capacity <800 cc60%
Two-wheeler CBUs with engine capacity >=800 cc75%
Commercial Vehicle CBUs (Trucks & Buses)20%
CKD containing engine or gearbox or transmission mechanism in pre-assembled form but
not mounted on a chassis or a body assembly
30%
CKD containing engine, gearbox and transmission mechanism not in a pre-assembled condition10%

Taxes on vehicles after GST

Tax TypeTax Rate
GST

 

Vehicle CategoryGST Rate
Electric Vehicles – Falling under tariff heading 8702, 8703, 8704, 871112%
Passenger Vehicles/Commercial Vehicles/Three-wheelers/Two-wheelers – Falling under tariff heading 8702, 8703, 8704, 871128%
Compensation Cess
Vehicle CategoryCess
>4m passenger vehicles (Petrol, Diesel, CNG, Ethanol, methanol, hybrid electric and fuel cell)15%
<4m passenger vehicles (petrol, CNG, Ethanol, Methanol)1%
<4m passenger vehicles (diesel, Ethanol, Methanol)3%
>350cc two-wheelers falling in tariff heading 87113%
10 – 13 seater public transport vehicles falling in tariff heading 870215%

 

Taxes in components (Post Purchase)

ComponentRate
Taxes on Fuel45% to 55%
 GST on Insurance Premium 18%
GST on Labor Charges18%
 GST on Spare Parts – Tyre, Battery, Spare Parts 28%
Service Tax on Loan Foreclosure18%

About Post Author

Girish

Hello Guys I am a website developer by profession but is always keen on learning new things. I have been investing in Mutual funds, stock market for the past few years because of which I have gained good knowledge. I started my entrepreneur journey in 2019 which lead me to learn more things as I am moving forward. I always love to share whatever I learn. Always had a craze for cars from my childhood, which inspired me to start this website.
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Girish

Hello Guys I am a website developer by profession but is always keen on learning new things. I have been investing in Mutual funds, stock market for the past few years because of which I have gained good knowledge. I started my entrepreneur journey in 2019 which lead me to learn more things as I am moving forward. I always love to share whatever I learn. Always had a craze for cars from my childhood, which inspired me to start this website.

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