
GST 2.0: Impact on Cars (Automobile Industry)
The GST Council has approved a major overhaul of the Goods and Services Tax framework, simplifying most rates into a two-slab structure of 5% and 18%, while introducing a new 40% special slab for select luxury and sin goods. The new architecture, being referred to as “GST 2.0,” is scheduled to come into effect from September 22, 2025. For the automotive sector, the headline outcomes are clear: Small, mass-market cars will receive a significant tax

