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 Category | Excise Duty % |
|---|---|
| Small cars | 12.5% |
| Length >4m but engine capacity less than 1500cc | 24% |
| Length >4m and engine capacity more than 1500cc | 27% |
| SUVs/MUVs (length >4m, engine capacity >1500cc and Ground clearance >170mm) | 30% |
| Hybrid cars | 12.5% |
| Specified components of Hybrid vehicles | 6% |
| Electric cars, Buses, 2W & 3W | 6% |
| Specified components of Electric vehicles | 6% |
| Buses | 12.5% |
| Trucks | 12.5% |
| Three wheelers | 12.5% |
| Two wheelers | 12.5% |
Import Duty on Imported Vehicle
| Criteria / Applicability | Import Duty in % |
|---|---|
| Used car import | 125% |
| 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 cc | 60% |
| Two-wheeler CBUs with engine capacity >=800 cc | 75% |
| 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 condition | 10% |
Taxes on vehicles after GST
| Tax Type | Tax Rate | ||||||||||||
| GST
|
|
||||||||||||
| Compensation Cess |
|
Taxes in components (Post Purchase)
| Component | Rate |
| Taxes on Fuel | 45% to 55% |
| GST on Insurance Premium | 18% |
| GST on Labor Charges | 18% |
| GST on Spare Parts – Tyre, Battery, Spare Parts | 28% |
| Service Tax on Loan Foreclosure | 18% |
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