GST rate cuts, Sept. 9 -- The central government's GST Council, in its 56th meeting held on 3 September 2025, announced major changes in the existing goods and services tax (GST) regime.

Along with reducing the tax structure to a two-tier system with only 5% and 18% GST as the tax slabs, Finance Minister Nirmala Sitharaman announced the updates in GST on cars, which made the automotive sector the talk of the town.

Mint reported earlier that the GST Council has decided to reduce the tax on small cars to 18%, compared to their earlier 22% levels. These small cars refer to four-wheelers with an engine capacity of up to 1,200cc and a length of up to 4,000 mm (sub 4 metres). In case of diesel vehicles, this small car limit is up to the engin...