New Delhi – The 56th meeting of the Goods and Services Tax (GST) Council turned into a rare festival of generosity today, as Finance Ministers across states agreed to slash taxes on everything from small cars to toy scooters—and even on the President’s new armoured sedan. Clearly, if you’re on wheels, the GST Council had something for you.
The biggest cheer came for India’s beloved small cars, with GST rates tumbling from a hefty 28% to a more manageable 18%. That means the humble hatchback will finally breathe easier, no longer subsidizing the fuel-guzzling SUVs in its next lane. Petrol, LPG, CNG, and even pint-sized diesels (under 1500cc and under 4 metres) all drove into the tax reduction lane.
And while the aam aadmi celebrated cheaper cars, Rashtrapati Bhavan quietly got its own gift: a shiny new armoured sedan for the President—exempted from IGST and cess. After all, even the First Citizen needs some “bulletproof” budget relief.
But the Council didn’t stop at four wheels. Handcarts, rickshaws, and even animal-drawn vehicles saw GST slashed from 12% to just 5%—a move that means your neighbourhood horse-drawn buggy is now officially part of India’s mobility revolution. Toys, tricycles, and pedal cars joined the bandwagon too, ensuring that the kids can now play GST-free while their parents negotiate EMIs.
Electric and hydrogen fuel-cell vehicles, ambulances, three-wheelers, and even parts like chassis, cabs, and accessories also saw tax relief, signalling the Council’s attempt to oil every nut and bolt of the mobility chain. However, before luxury carmakers could pop champagne, the Council reminded them of their sins: hybrid cars above 1200cc (petrol) and 1500cc (diesel), or longer than 4 metres, will now attract a sizzling 40% GST. Yes, hybrids went from eco-warriors to tax targets overnight.
Not to be left behind, even tanks and armoured fighting vehicles enjoyed a GST reduction—from 12% to 5%. Defence experts joked that “Make in India” just became “Tax Break in India.”
Services also rolled into the spotlight, with rationalized GST on renting motor vehicles and goods carriers (fuel included), as well as third-party insurance for goods carriage. In short, whether you’re moving people, products, or presidential convoys, the taxman has rejigged the maths.
The GST Council’s latest overhaul could be summarised as: small cars happy, hybrids sulky, toyshops cheerful, and horse carts trotting proudly into a lower tax bracket. And for the President’s shiny new sedan? Let’s just say—it’s the only car in India that’s both bulletproof and tax-proof.
