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Diwali car price cut: Before the festivals, there has been a big news of relief for the general public. Cars and two-wheelers are expected to be cheap by Diwali this year. Actually, GST Council Group of Ministers (GOM) has approved changes in tax rates on vehicles. This will directly affect the pockets of the customers and buying vehicles will become economical than before.

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What are the new GST rates? (Diwali Car Price Cut)

Till now, rates of 5%, 12%, 18% and 28% were applicable on the auto sector. But after the new proposal, the slab of 12% and 28% will be removed. That is, only 5% and 18% rates will be applicable.

Two-wheelers, small cars, autos and trucks will now be available at a low price.
Electric vehicles (EVS) will remain applicable as before 5% GST.
Hydrogen fuel cell vehicles will be brought to 18% slab.
There will be no change on luxury and big cars – 40% tax will still be applicable on them.

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How much cheaper will the vehicle be? (Diwali Car Price Cut)

The prices of small vehicles can be reduced by about ₹ 36,000.
Bike and scooter prices can be reduced by about ₹ 6,000.

This change will directly benefit the customers and at the same time the sale of auto sector will also be seen.

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Big relief for auto companies also (Diwali Car Price Cut)

Companies like Maruti Suzuki, Tata Motors are expected to get a big benefit from this, as these brands provide budget-friendly vehicles for common customers. On the occasion of Diwali, where people like to shop for new vehicles, this step of tax deduction can bring sales boom in the market.