Buyers to save up to Rs 1 lakh on small cars, bikes

Hyderabad: The recent changes in GST slabs will benefit the middle-class, as small cars (under 4 meters) now attract 10 percent less tax and bikes to become more affordable.

Earlier, the government raised the income tax exemption limit to Rs 12 lakh and reduced interest rates, providing much relief to the common man.

However, taxes have been increased on big bikes and luxury cars.

Who benefits with new GST slabs?

Diesel cars under 1500cc and petrol/CNG/LPG cars under 1200cc will now attract only 18 percent GST, a 10 percent drop from the earlier tax rates.

Tata Altroz, Maruti Suzuki Swift, Hyundai i10, i20 and Renault Kwid, popularly driven on Indian roads, will become cheaper.

This means buyers can save anywhere between Rs 60,000 to Rs 1 lakh.

Two-wheelers like Bajaj Pulsar and Hero Splendor will, now be cheaper as GST drops from 28 percent to 18 percent.

What gets costlier?

However, the common man will burn more pockets as high-end bikes above 350cc like Royal Enfield and KTM will become more expensive with 40 percent GST plus 3 percent cess.

SUVs such as Tata Harrier, Mahindra XUV700, Maruti Grand Vitara, and Hyundai Creta will face a higher 40 percent GST.

However, since the earlier cess has been scrapped, buyers could still save anywhere between five percent and ten percent compared to the old rates.

As for electric vehicles, GST will continue with 5 percent.