Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.
Ad

GST on hybrid vehicles might see a reduction

May 29, 2017, 03:29 PM IST by Pratheek Kunder
GST on hybrid vehicles might see a reduction

The new GST taxation system has brought smiles to the faces of several car manufacturers, especially big sedans and SUV makers. But hybrid car makers are definitely unhappy due to the exorbitant tax rate of 43 per cent levied on hybrids. 

Apart from the 28 per cent GST, hybrid cars like the Toyota Prius and Honda Accord Hybrid will also attract 15 per cent additional cess, thus raising the overall taxation to 43 per cent. The current tax slab applicable on these cars is 30.3 per cent, which is considerably lower. Due to the high GST, many manufacturers would now want to stay away from launching hybrid cars, which will indirectly add to the growing air pollution. 

Some of the manufacturers have expressed concern to the GST council. Nitin Gadkari, Union Minister, understands this and will be talking to finance minister, Arun Jaitley, to reduce the tax slabs on environment friendly transportation like hybrid cars. Interestingly, the government retained the GST of all-electric cars at 12 per cent. Given that the tax increase is on hybrid cars only and there’s been no change in the tax slab for all electric cars, is this the government’s way to push electric cars only? Only time will tell us. 

  • FaceBook Logo
  • Twitter Logo
  • Email Logo
Show CommentsHide Comments
bell icon
Never miss an update
Receive latest updates from CarWale
Ad

Toyota Prius Price in India

CityOn-Road Prices
Mumbai₹ 57.22 Lakhs onwards
Bangalore₹ 59.45 Lakhs onwards
New Delhi₹ 51.94 Lakhs onwards
Pune₹ 57.14 Lakhs onwards
Hyderabad₹ 54.73 Lakhs onwards
Ahmedabad₹ 51.61 Lakhs onwards
Chennai₹ 55.19 Lakhs onwards
Kolkata₹ 51.59 Lakhs onwards
Chandigarh₹ 51.04 Lakhs onwards
  • Upcoming Cars

Tata Tiago EVTata Tiago EV

Nov 2019

5L - ₹ 7L
Hyundai Tucson FaceliftHyundai Tucson Facelift

Nov 2019

18L - ₹ 20L
Tata Tigor FaceliftTata Tigor Facelift

Nov 2019

6L - ₹ 7L
Audi Q2Audi Q2

Nov 2019

28L - ₹ 32L
Jaguar XE FaceliftJaguar XE Facelift

4th Dec 2019

40L - ₹ 48L
All Upcoming Cars
Buying a new Car?Ask the experts1800 2090 230(Toll free)

Select your city to avail offers

Currently available only in