Impact of GST on Cars and Two Wheelers


From Today, the buying of all the Cars, as well as the Two-Wheeler’s, will become much cheaper as compared to before due to the rollout of Goods and Service Tax. Impact of GST on Cars and Vehicles is very high.

Impact of GST on Cars

Prices of all the small cars in the market such as Alto, Swift, Dzire, i20 Elite and some more will get a minimum price drop of Rs 6,500 to maximum up to Rs 15,000. From July 1, 2017, the GST on all the Cars will come down to 29% from 31.4%.

Here is the deal:

Apart from this, all the mid-size cars will become much cheaper from today as there will be as the tax will decrease to 3.6%. All the popular cars in this sector such as Honda City, Hyundai Verna, Maruti Ciaz and Volkswagen Vento will get a minimum price cut of Rs 30,000.


The most amazing deal due to GST Rollout will be observed in all the popular Luxury Cars. Luxury Cars such as Mercedes-Benz, BMW, Audi and Jaguar Land Rover will get a minimum price cut of Rs 1.25 lakh to Rs 7 lakh because of the decrease in the rate of 8.8%.

Want to know the best part?

Sports Utility Vehicle, the most popular cars after the personal cars, will get the maximum drop amongst all the cars. Due to GST, all the SUV all the SUV will be charged 43% after a reduction of 12.3%. Earlier 53% was charged on SUVs.

Impact of GST on Two Wheelers

Moving over to the Two-Wheeler’s, all the bikes, and scooters will observe a minimum drop from Rs 1,000 to maximum Rs 5,000. Due to GST, all the two wheelers with Engine less than 350cc will have a price drop up to 2.2% while the Engines above 350cc will have a price drop up to Rs 0.8%.

Apart from all this, all the buses with the passenger capacity of 10-13 will observe a price going up to 13%. While all the Commercial vehicles will observe a price drop of 2%.From this analysis, we observed that the Impact of GST on Cars and Two-Wheelers is very high. This new Scheme will be beneficial for all the people who want to buy Cars and Two-Wheelers in the near Future.