GST On Commercial Vehicles

According to InCred Equities, the CV downcycle that played out over six quarters between April 2024 and July 2025 appears to be bottoming out.

Following Covid-related disruptions, large fleet operators overwhelmingly opted for the 12 per cent FCM route, claiming ITC benefits on truck purchases.

Maruti Suzuki's volumes dipped marginally by 0.6 per cent Y-o-Y to 181,000 units, with export growth of 40.5 per cent Y-o-Y offset by a 7.5 per cent drop in domestic sales.

Calls for slashing of rates to promote green mobility, single tax slab for goods transport services

Cars and two-wheelers attract 28% GST and a cess in the range of 3-22%, taking the effective tax rate to up to 50%

Against the five per cent dip experienced in the medium and heavy commercial vehicle space in the country, the LCV market is growing by 18-20 per cent after the implementation of GST