Table of Contents
How much is GST on a luxury car?
Pre-GST Tax Laws on Automobiles
| Segment | Excise | TOTAL |
|---|---|---|
| Small Cars <1200cc | 12.50\% | 18\% |
| Mid-SizeCars from 1200cc to 1500cc | 24\% | 18\% |
| Luxury Cars>1500cc | 27\% | 28\% |
| SUV’s >1500cc, >170mm ground clearance | 30\% | 28\% |
Why is car import duty so high in India?
Tax on imports in India are high because of India’s policy of encouraging local/homegrown industries. This is called import substitution industrialisation (ISI), a trade policy that is all about substituting imports with domestic manufacturing and production.
What is lifetime road tax in India?
Rules and regulations for a few states of India
| Age of the Vehicle | 2-wheelers less than Rs.50,000 | 2-wheelers more than Rs.1 lakh |
|---|---|---|
| New Vehicles | 10\% of vehicle’s cost | 18\% of the vehicle’s cost |
| Not more than 5 years | 75\% | 75\% |
| More than15 years | 25\% | 25\% |
What should you know before importing a vehicle to India?
Here is a list of things you should be aware of before importing a vehicle to India: Import Duty on cars; You may need to pay approximately 165\% of the car’s cost, insurance, and freight (CIF) value as import duty. Import Duty on bikes; You may need to pay approximately 116\% of the bike’s cost, insurance, and freight (CIF) value as import duty.
What is the import duty for a luxury car in India?
In case of luxury car, the import duty is 100\% of the value of car. Countervailing Duty in lieu of Excise Duty at 12.5\% on 2 C = 0.25 C Special Additional Custom Duty or SAD – 4\% of 2.25 C = 0.09 C This is only illustrative, the actual duty shall vary based on facts, circumstances and exchange rate on date of import
What is the GST rate on cars in India?
GST on cars in India is applicable across multiple slab rates of 5\%, 12\%, 18\% and 28\%. The most relevant GST rate on cars is 28\% that applies to motor vehicles including those for personal as well as commercial use.
How much is the import duty on a bike in India?
You may need to pay approximately 116\% of the bike’s cost, insurance, and freight (CIF) value as import duty. The vehicle needs to be registered in India at the nearest RTO. The charges for registration and road tax are not included in the import duty.