Car and motorcycle showrooms are now required to display posters outlining the new GST 2.0 prices. These posters must feature both the old and new prices. Furthermore, a photo of Prime Minister Narendra Modi is a mandatory inclusion on these posters. According to reports, the Ministry of Heavy Industries (MHI) recently instructed car and two-wheeler manufacturers to install these posters at all dealerships. The posters should illustrate a comparison between the old and new prices following the recent Goods and Services Tax (GST) changes.
This directive was conveyed to the companies through the Society of Indian Automobile Manufacturers (SIAM). The ministry also specified that the posters must include an image of Prime Minister Narendra Modi. Automobile companies are now preparing the posters and submitting them to the ministry for approval.
New GST rates will take effect from September 22.
GST 2.0 is being implemented in India, directly impacting car prices. The new tax structure designates only two slabs for cars: 18% and 40%. Small cars (petrol/CNG engines up to 1200cc and diesel up to 1500cc, less than 4 meters in length) will now be subject to just 18% GST. Previously, these cars attracted 28% GST plus a 13% cess, resulting in a total tax of up to 29-31%. The tax has now been reduced to 18%. Large and mid-size cars and SUVs (engines above 1500cc, longer than 4 meters) will now attract 40% GST. Previously, they had 28% GST plus a 15-22% cess, leading to a total tax of up to 43-50%. This category also sees a tax reduction of 5-10%.
Two-wheeler vehicles will also become cheaper.
The implementation of GST 2.0 in India is significantly affecting two-wheelers. The government has established new tax rates, which have made smaller scooters and bikes more affordable for consumers, while premium and high-end bikes have become more expensive. Under the new system, bikes up to 350cc and all scooters will be subject to only 18% GST. Previously, they were taxed at approximately 31% (28% GST + 3% cess). Bikes above 350cc will now be taxed at 40%. Previously, they were taxed at approximately 31%.
