GST on electronics, small cars and bikes brought down to 18%

The Goods and Services Tax (GST) on white goods ranging from refrigerators to ACs, dishwashers and TVs sets has been brought down to 18% from the previously 28% making these goods cheaper for consumers.

Motorcycles of engine capacity upto 350 cc will attract a GST rate of 18% while motorcycles of engine capacity exceeding 350 cc attract a GST rate of 40%.

Tractors, other than road tractors for semi-trailers of engine capacity more than 1800 cc, attract a GST rate of 5%. However, road tractors for semi-trailers, with engine capacity more than 1800 cc attract a GST rate of 18%. It has been reduced from 28%.

The GST rate on three-wheelers classified under HSN 8703 is 18%. It has been reduced from 28%.

The GST rate on all small cars has been reduced from 28% to 18%. For the purposes of GST, small cars means Petrol, LPG, or CNG cars with engine capacity up to 1200 cc and length up to 4000 mm and Diesel cars with engine capacity up to 1500 cc and length up to 4000 mm.

The new GST rate on mid-size and big cars i.e vehicles exceeding 1500 cc or length exceeding 4000mm will be 40% with no compensation cess.

Further, motor vehicles in the category of Utility Vehicles, by whatever name called including Sports Utility Vehicles (SUV), Multi Utility Vehicles (MUV), Multi-purpose Vehicles (MPV) or Cross-Over Utility Vehicles (XUV), with an engine capacity exceeding 1500 cc, length exceeding 4000 mm, and ground clearance of 170 mm and above, will also attract a GST rate of 40% without any cess.

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