GST Cut : छोटी कारें और 350cc से कम की Bike होंगी सस्ती, इन गाड़ियों पर अब 18% देना होगा GST

In a major reform effective from 22 September 2025, the GST Council has reduced the tax rate on small cars and two-wheelers (up to 350 cc) from 28% to 18%.  Under the new rule, compact petrol cars with engine capacity up to 1,200 cc and a length of 4,000 mm (or small diesel cars up to 1,500 cc) are now eligible for the lower slab.  This move is expected to cut prices of popular budget models like the Maruti Alto, Hyundai Grand i10 and Tata Tiago by up to 10%.  On the two-wheeler front, commuter motorcycles and scooters under 350 cc — such as Honda Shine or Bajaj Pulsar — will also become more affordable.  Meanwhile, the reform introduces a flat 40% GST on larger vehicles and premium motorcycles, marking a big shift in the auto‑tax landscape.