Since its implementation on July 1, 2017, the Goods and Services Tax (GST) has significantly impacted various sectors of the Indian economy, including the automobile industry. The GST replaced indirect taxes like excise duty, VAT, and service tax, simplifying India's tax structure. But how has GST affected automobile prices in India? Is it benefiting consumers, or has it made owning a vehicle more expensive? In this blog, we will explore the effects of GST on the Indian automobile industry, looking at the tax structure, price changes, and its broader implications for consumers. Understanding GST and Its Rate Structure for Automobiles Under the GST regime, cars and other automobiles are taxed based on specific categories. The GST rates for automobiles range between 18% and 28%, depending on the type of vehicle. On top of this, a compensation cess is also levied to offset the loss of revenue for the states, particularly on luxury and high-end cars. Here's a breakdown of t...
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