GST rate cut: TVS Motor Company on Monday said it will pass on the full benefit of the GST rate reduction to customers across its internal combustion engine
portfolio. With the GST Council reducing GST rates on ICE vehicles from 28 per cent to 18 per cent, there will be significant savings on the company's products, TVS Motor Co said in a statement without divulging details. Electric vehicles remain unaffected and continue to enjoy the concessional rate of 5 per cent GST. The benefits will be available to customers starting September 22, 2025, it added. "The GST rate rationalisation is a bold and transformative move that will accelerate consumption across society...We will pass on the full benefit of GST rate reduction to customers across our ICE portfolio," TVS Motor Company Director & CEO, KN Radhakrishnan said. Further, the company said it will be undertaking extensive communication measures to apprise customers of the benefits accruing from GST rate reductions.
GST council meeting
The GST Council in its 56th meeting, on September 3 had approved the rate rationalisation of GST. The Council decided to discontinue the 12 percent and 28 percent GST rates, keeping only the 5 percent and 18 percent rates.The meeting was chaired by Finance Minister Nirmala Sitharaman and attended by state finance ministers.
Bikes under 350 cc are set to get cheaper as the GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
Motorcycles up to 350 cc would be taxed at a lower GST of 18 per cent against 28 per cent currently. While motorcycles with an engine capacity exceeding 350 cc attract a GST rate of 40 per cent.
Meanwhile, small vehicles, including those with petrol, or CNG engines up to 1200 cc and diesel engines up to 1500 cc, with lengths not exceeding 4000 mm, will benefit from a reduced GST rate of 18 per cent, previously 28 per cent. (With PTI Inputs)
