Auto Industry Welcomes New GST Slab Revisions Ahead Of Festive Season

The GST Council reduced tax on small cars and motorcycles below 350cc to 18%, a move hailed by automakers as boosting affordability, demand, and manufacturing growth.

The GST Council on Wednesday approved the reduction of GST on cement from 28% to 18%.

The GST rate reduction on cement will not only support domestic manufacturers but also accelerate the pace of infrastructure development and catalyse industrial expansion in India, industry players said on Thursday.

The GST Council announced a major revision in GST rates on September 3, 2025.

The revised rates will come into effect from Sept. 22.

The potential revenue loss could be offset by chances of higher dividends from PSUs, higher dividends from the Reserve Bank of India, and hike in excise duty on diesel and petrol, say economists.

In response to the Trump tariffs—which reached a cumulative 50% in August 2025—India has focused on building partnerships with Russia and China.

Agarwal further added that GST reforms have attempted to simplify the overall tax structure and that the Finance Minister and Government are aiming for an increase in credit flow.

GST Rate Cuts: Here is a list of cars which will get expensive and cheaper after the new GST tax slabs

GST Cut Price Puzzle: Given the timing of the sales and the effective date, the question is if the benefit of rate cuts will set in during the sales.

The GST Council has put harmful and luxury items like tobacco, sugary drinks and expensive cars into a 40% tax bracket.

The GST has been reduced from 12% to NIL on 33 lifesaving drugs and medicines and from 5% to nil on 3 lifesaving drugs & medicines.

Finance Minister Nirmala Sitharaman unveiled tax cuts for hundreds of consumer items, from soap to cars, in the biggest overhaul of the goods and services tax (GST), set to take effect from September 22.

GST on health clubs, salons, barbers, fitness centres, yoga, etc, has been slashed from 18% with Input Tax Credit (ITC), to 5% without tax credit.