&imwidth=800&imheight=600&format=webp&quality=medium "Centre asked car companies to display GST price cut posters? Report makes big claim")
The central government has reportedly asked car and two-wheeler manufacturers to display posters showing a comparison of their products before and after the lowering of the Goods and Services Tax (GST).
GST rate cut 2025
The centre has eliminated the 12 per cent and 28 per cent GST slabs and introduced a new 40 per cent slab. It has placed most of the items under these slabs into the 5 per cent and 18 per cent slabs. Products like luxury cars and tobacco products, which are categorised as 'sin' goods, have been placed under the 40 per cent slab.
The centre's initiative will lower the prices of most of the goods and services affecting the common man, including cars and two-wheelers. Small cars, defined as those under 4000 mm in length and with engines of less than 1200 cc, will attract only 18 per cent GST as opposed to 28 per cent. Utility vehicles will attract 40 per cent GST; however, the overall tax will be lower than the previous 48 per cent tax.
What the Centre has said
The Ministry of Heavy Industries (MHI), Business Standard reports, has routed the instructions through the Society of Indian Automobile Manufacturers (SIAM), and automobile firms are now getting posters designed.
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It isn't clear whether the cost of printing and distributing these posters will be borne by companies, dealers, or divided between the two companies.
Industry sources told the newspaper that the automobile industry will be spending at least Rs 20-30 crore for this activity. These posters will be placed at dealerships this week. However, luxury car companies will not be required to display them.
Top companies like Maruti Suzuki, Hyundai, Mahindra and Mahindra, Tata Motors, Toyota, and Kia have announced that they will pass on the entire GST benefit to customers.