Mumbai, Sept. 4 -- The Goods and Services Tax (GST) Council, on 3 September, provided a much-anticipated boost to the Indian automotive industry with a vast majority of segments now coming under a lower tax bracket.

For perspective, starting 22 September, two-wheelers (upto 350cc) and small cars (sub- 4-metre) will now attract a tax of 18 percent from the existing 28 percent. The reduction in GST for the passenger vehicle segment is for petrol, diesel (and hybrid vehicles) upto 1,200 cc and 1,500 cc respectively.

Similarly, three-wheelers, buses, trucks and ambulances will now see a GST rate of 18 percent from the existing 28 percent. Furthermore, the tractor segment, its components and tyres will now be placed in the lowest GST bracket...