Is GST 2.0 Creating a Buzz Among Car Buyers and Dealers?
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Synopsis
The recent implementation of GST 2.0 has ignited a remarkable surge in car sales and customer enthusiasm across India. This reform not only alleviates financial burdens on consumers but also simplifies tax structures, creating a festive atmosphere in showrooms nationwide. Discover how this new era is reshaping the automotive market.
Key Takeaways
- GST 2.0 has reduced tax rates for various vehicles.
- Car buyers are enjoying savings of Rs 70,000 to Rs 80,000.
- The reform has led to increased vehicle sales.
- The new tax structure simplifies financial planning for consumers.
- Overall market sentiment is positive, coinciding with festive seasons.
Lucknow/Malkangiri (Odisha), Sep 23 (NationPress) A surge of enthusiasm is enveloping car showrooms following the introduction of the revamped GST framework, leading to a notable increase in customer visits and vehicle purchases.
Shabir, who recently secured a Hyundai Creta, shared with IANS that the new GST rates enabled him to save nearly Rs 70,000–Rs 80,000. Ram Singh, another satisfied customer, noted that manufacturers are now fully transferring the GST advantages to consumers. He bought a Hyundai i10 and saved around Rs 70,000 compared to the previous price.
Asim, the Assistant General Manager at a Hyundai dealership in Lucknow, remarked on the overwhelmingly positive reception of the reform. "The influx of first-time buyers is increasing, and with the complete transfer of GST benefits, prices have significantly dropped," he stated.
Similar enthusiasm is evident in other regions as well.
Customers in Malkangiri, Odisha, reported that reduced GST rates have made both cars and two-wheelers considerably more affordable than before.
Effective from September 22, the new GST rates have lowered the tax to 18 per cent for gasoline vehicles up to 1,200cc and under four meters long, as well as for diesel vehicles up to 1,500cc and under four meters.
Previously taxed at 50 per cent, larger vehicles will now face a tax rate of 40 per cent. The tax for two-wheelers up to 350cc has been reduced from 28 per cent to 18 per cent.
In the meantime, shopkeepers, wholesalers, and households across India have responded positively to the GST 2.0 reforms, which commenced on Monday.
This revamped tax system coincided perfectly with the start of Navratri, offering immediate relief on essential goods, simplifying tax slabs, and lowering prices.
PM Narendra Modi hailed GST 2.0 as "a reform dedicated to the people of India," and true to his words, it felt less like a mere policy shift and more like a festive celebration. Car showrooms experienced long queues, online shopping carts filled with orders, and record-breaking festive sales.
Point of View
I observe that the implementation of GST 2.0 represents a significant shift in the automotive sector, reflecting the government’s commitment to easing the financial burden on consumers. This reform fosters a more competitive market, ultimately benefiting the end-user while enhancing the overall economic landscape.
NationPress
23/09/2025
Frequently Asked Questions
What is the new GST rate for cars?
The new GST rate for gasoline vehicles up to 1,200cc has been reduced to 18%, and for diesel vehicles up to 1,500cc, it is also 18%. Larger vehicles are now taxed at 40% instead of 50%.
How much can consumers save with the new GST rates?
Consumers can save between Rs 70,000 to Rs 80,000 on their vehicle purchases due to the revised GST rates.
When did the new GST rates come into effect?
The new GST rates came into effect on September 22.
What impact has GST 2.0 had on car sales?
GST 2.0 has led to a significant increase in customer footfall and vehicle sales across showrooms in India.
How has the public responded to GST 2.0?
The public has responded positively to GST 2.0, viewing it as a festive opportunity that has simplified tax structures and reduced prices on essential goods.
