India, Sept. 22 -- The Next Gen GST reforms announced by Finance Minister Nirmala Sitharaman earlier this month have come into effect from September 22, with these, vehicles and motorcycles with engines up to 350 CC will see a tax reduction.

These vehicles, which earlier came in the 28% tax slab, have now come down to the 18% tax bracket. With this entry-level vehicle will become more affordable.

Two-wheelers above 350 CC and bigger cars have come down to the 40% slab for luxury goods, as per the new reforms. Meanwhile, electric vehicles will remain in the 5% tax bracket.

Cars with petrol engines up to 1200cc or diesel engines up to 1500cc, and a length of no more than 4000 mm, are classified as small cars. These vehicles will now be t...