{"id":6185,"date":"2023-08-28T12:31:47","date_gmt":"2023-08-28T12:31:47","guid":{"rendered":"\/blog\/?p=6185"},"modified":"2025-01-21T14:14:46","modified_gmt":"2025-01-21T08:44:46","slug":"impact-of-gst-on-car-prices-how-it-affects-your-buying-plans","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-vehicle\/impact-of-gst-on-car-prices-how-it-affects-your-buying-plans\/","title":{"rendered":"Impact of GST On Car Prices &#038; How It Affects Your Buying Plans"},"content":{"rendered":"\n<p>With GST going live on 1st July 2017, many people are wondering how it will impact their finances. And those people are more concerned who are planning to make their big-ticket purchases in near future.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan.html\">Know More About Used Car Loan<\/a><\/div>\n\n\n\n<p>Once such big purchase is that of a\nvehicle. So what has been the impact of GST on car prices? Let&#8217;s have a look at\nit.<\/p>\n\n\n\n<p>To simplify things, the government\nhas decided to put a GST of standard 28% on all vehicles irrespective of make,\nmodel, engine capacity, or body type (excluding electric and hybrid vehicles).\nBut to maintain the differentiation, there is an additional cess levied over\nand above the standard 28%. This cess ranges from 1% to 15%, depending on the\nsegmentation of the cars:<\/p>\n\n\n\n<p>\u2022 Small cars that belong to Sub-4 meter size and having an\nengine capacity of 1.2-L or less will attract additional cess of 1%. So the\neffective tax rate here is 29%. For those cars having engine capacity between\n1.2-1.5L will&nbsp;attract a cess of 3%, i.e. a total tax of 31%. When compared\nto earlier taxes, this is cheaper by 2-3%<\/p>\n\n\n\n<p>\u2022 Cars with petrol engine above 1.2-L capacity and diesel\nengines above 1.5-L will attract additional cess of 15%. This is also\napplicable to SUVs and luxury cars. Here again, the impact of the switch to GST\nis a reduction in tax rates by 1-12%.<\/p>\n\n\n\n<p>\u2022 Electric cars will have a GST of 12%, which is about 7.5%\nless than earlier taxes. But there are not many options available in this\nspace. Unfortunately, the taxes have gone up on hybrid cars from 30.3% to 43%.<\/p>\n\n\n\n<p>So as is evident from above, the cost of vehicles, in general, is expected to go down after GST. This fact combined with low interest rates on <a title=\"Car Loan\" href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan.html\">car loans<\/a> these days make it a good time to purchase a car if someone is waiting on sidelines.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/vehicle-loan\/used-car-loan\/apply-now-used-car-loan.html\">Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>With GST going live on 1st July 2017, many people are wondering how it will impact their finances. And those people are more concerned who are planning to make their big-ticket purchases in near future.<\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/vehicle-loan\/impact-of-gst-on-car-prices-how-it-affects-your-buying-plans\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":5709,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-6185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-vehicle"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Impact of GST On Car Prices &amp; How It Affects Your Buying Plans - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Understand how GST affects car prices, including tax rates on different car types and how it impacts your vehicle buying decisions. To know more, visit Tata Capital.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Impact of GST On Car Prices &amp; How It Affects Your Buying Plans - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Understand how GST affects car prices, including tax rates on different car types and how it impacts your vehicle buying decisions. To know more, visit Tata Capital.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/impact-of-gst-on-car-prices-how-it-affects-your-buying-plans\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T12:31:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-21T08:44:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/car-loan-info.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/impact-of-gst-on-car-prices-how-it-affects-your-buying-plans\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/impact-of-gst-on-car-prices-how-it-affects-your-buying-plans\/\",\"name\":\"Impact of GST On Car Prices & How It Affects Your Buying Plans - TATA Capital Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2023-08-28T12:31:47+00:00\",\"dateModified\":\"2025-01-21T08:44:46+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"Understand how GST affects car prices, including tax rates on different car types and how it impacts your vehicle buying decisions. 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