At up to 50%, cars in India suffer among the highest tax rates globally

Cars and two-wheelers attract 28% GST and a cess in the range of 3-22%, taking the effective tax rate to up to 50%

Topics
GST on commercial vehicles | Value Added Tax | GST on cars

Shally Seth Mohile  |  Mumbai 

India levies one of the highest tax rates on automobiles among most countries of the world, when compared with goods and services tax (GST) equivalent, Value Added Tax (VAT). Cars and two-wheelers attract a GST rate of 28 per cent in India and a cess that ranges from 3-22 per cent taking the effective tax rate to up to 50 per cent.

GST was implemented in July 2017, which subsumed a host of indirect taxes, including excise duty, VAT and entertainment tax. The GST rate on an automobile, which has often been a contentious issue between auto firms and policymakers in India, was back in the ...
First Published: Mon, September 21 2020. 19:05 IST
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