Mumbai, Sept. 4 -- The Finance Ministry, Government of India, has reduced Goods & Services Tax (GST) on new vehicles from 28 percent to 18 percent, effective 22 September 2025.

The move is part of the government's focus to simplify the tax structure, along with pushing domestic consumption to cushion from external economic impacts such as US tariffs.

For the automotive industry, the government has reduced GST on petrol, petrol-hybrid, LPG, CNG (not exceeding 1200 cc and 4000mm) from 28 percent to 18 percent. Similarly diesel and diesel-hybrid vehicles (not exceeding 1500 cc and 4000 mm) the taxes have been revised to 18 percent. For three-wheelers, motor vehicles for transport of goods and two-wheelers (upto 350cc and below) are being t...