Proposed GST rate tweaks on automobiles to end classification disputes - Business News, Finance News, Share Market News - Market trendz

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Monday, 18 August 2025

Proposed GST rate tweaks on automobiles to end classification disputes


The Centre is planning sweeping GST reforms that could lower taxes on automobiles, now taxed up to 50% including cess. Under the proposal, GST will shift to a two-tier system of 5% and 18%, with 40% for select items. Automobiles may be reclassified to end disputes on engine size and length, making cars more affordable and boosting demand.

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