The new GST rates and impact Heavy industries.
The new GST rates and impact Heavy industries.
The new GST rates and slabs will have a wide-scale impact on the many items related to Heavy industries. It’s detailed clarifications is as follows:
Automobiles
Two-Wheelers (Bikes upto 350cc which incudes bikes of 350cc) – (28% to 18%)
Small Cars (GST down to 18%, from 28%)
Large Cars (GST reduced to flat 40% with no cess)
Tractors (<1800 cc down from 12% to 5%)
Road tractors for semi-trailers (engine capacity more than 1800 cc down from 28% to 18%)
Tractor parts reduced to 5%
Buses (seating capacity of 10+ persons) [GST down from 28% to 18%]
Commercial Goods Vehicles (Trucks, delivery-vans, etc) [GST down from 28% to 18%]
Auto components
It is also important to note that the services associated with the transport of goods and passengers have also undergone significant changes and rationalisation. The rates have been reduced where necessary, and ITC has been passed on to avoid the cascading effect.
Further, the entire goods transportation and passenger transportation by road is given the options of two rates, i.e. 5% or 18% to choose as per the requirement of their business.