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Understanding GST on Cars in India: Rates, Regulations, and Key Insights

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Summary

India’s Goods and Services Tax framework for vehicles offers differentiated tax rates and compensation cess based on vehicle type, engine capacity, and intended use. The blog details how personal, commercial, pre-owned, and electric vehicles are taxed and explains adjustments meant to boost sectors like the used car market. Staying updated with GST changes empowers informed purchase decisions.

Key Takeaways

  • GST rates vary for personal, commercial, and pre-owned vehicles.
  • Compensation cess significantly affects overall vehicle taxes.
  • Electric vehicles benefit from lower GST to promote sustainability.
  • Staying informed on GST updates aids compliance and smart buying.

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