The 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, approved a revised two-slab GST structure of 5% and 18%, set to be implemented from September 22. The council also addressed issues related to the compensation cess.
As part of the new measures, GST on small cars and motorcycles with engine capacity up to 350 cc has been reduced from 28% to 18%. Similarly, GST on buses, trucks, and ambulances has been cut from 28% to 18%. A uniform 18% rate has been introduced for all auto parts, and three-wheelers will also see a reduction from 28% to 18%.
“This move is aimed at simplifying the GST structure while providing relief to both manufacturers and consumers in the automotive sector,” Finance Minister Sitharaman said after the council meeting.
The revised rates are expected to benefit the auto industry and contribute to easing vehicle prices for buyers across India.