Archive · 19 Dec 2025

GST Rate Cut Boosts Auto Sales

GST Rate Cut Boosts Auto Sales

The Indian government cut the GST rates on vehicles starting from 22 September 2025.

This made vehicles cheaper to buy and encouraged more people to purchase them.

Sales of vehicles went up by 29.1% in October 2025 compared to the previous year.

The biggest benefit was for commercial vehicles like buses and trucks, where the GST rate was reduced from 28% to 18%.

This also helped a government program that encourages people to replace old vehicles with new ones.

The government says this change is good for the auto industry and makes transportation cheaper and more efficient.

Sources