Recommendations of 56th Meeting of GST Council for Transportation Or Automobile Sector: GST Council has recommended a restructuring of rates for the transportation and automobile sector. A wide range of vehicles, including new pneumatic tires, motor vehicles for transporting ten or more persons, small cars (both petrol/LPG/CNG with engine capacity not exceeding 1200cc and diesel with capacity not exceeding 1500cc, both under 4000mm length), ambulances, three-wheeled vehicles, goods transport vehicles, and motorcycles under 350cc, will see their GST rate reduced from 28% to 18%. This reduction also applies to their respective parts and accessories. In contrast, the GST rate for larger and luxury vehicles will increase. Motor vehicles with engine capacity or length exceeding the specified limits, motorcycles with an engine capacity greater than 350cc, personal aircraft, and pleasure yachts will see their GST rate increase from 28% to 40%. These recommendations establish a tiered tax system, with a lower rate for smaller and commercial vehicles and a higher rate for larger and luxury-segment products. Also Read: 1. FAQs on decisions of 56th GST Council Meeting 2. Recommendations of 56th Meeting of GST Council
Recommendations for TRANSPORTATION or AUTOMOBILE SECTOR
28% to 18%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 4011 | New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; rear tractor tyres; and of a kind used on aircraft] |
| 2. | 8701 | Road tractors for semi-trailers of engine capacity more than 1800 cc |
| 3. | 8702 | Motor vehicles for the transport of ten or more persons, including the driver [other than buses for use in public transport, which exclusively run on Bio-fuels] |
| 4. | 8703 | Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm. |
| 5. | 8703 | Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm. |
| 6. | 8702 or 8703 | Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles |
| 7. | 8703 | Three wheeled vehicles |
| 8. | 8703 40, 8703 60 | Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm |
| 9. | 8703 50, 8703 70 | Motor vehicles with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm |
| 8704 | Motor vehicles for the transport of goods [other than Refrigerated motor vehicles] | |
| 10. | 8706 | Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705 |
| 11. | 8707 | Bodies (including cabs), for the motor vehicles of headings 8701 to 8705 |
| 12. | 8708 | Parts and accessories of the motor vehicles of headings 8701 to 8705 [other than specified parts of tractors] |
| 13. | 8711 | Motorcycles of engine capacity (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars, of an engine capacity not exceeding 350cc; side cars |
| 14. | 8714 | Parts and accessories of vehicles of heading 8711 |
| .15 | 8903 | Rowing boats and canoes |
| 16. | 9401 20 00 | Seats of a kind used for motor vehicles |
(28% to 40%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 8703 | Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars, other than those mentioned at Sr. Nos.4,5,6,7,8 and 9 of above table [wherein 28% to 18% is mentioned ] |
| 2. | 870340, 870360 | Motor vehicles with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion, of engine capacity exceeding 1200cc or of length exceeding 4000 mm |
| 3. | 870350, 870370 | Motor vehicles with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion, of engine capacity exceeding 1500cc or of length exceeding 4000 mm |
| 4. | 8711 | Motor cycles of engine capacity exceeding 350 cc |
| 5. | 8802 | Aircraft for personal use. |
| 6. | 8903 | Yacht and other vessels for pleasure or sports |
Note: The recommendations of the GST Council have been presented in this article containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law. The author is not promoting or confirms or guarantee the final decision of the government to implement these recommendations and same shouldn’t be a cause of action against author to held responsible for any loss by using this information.
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