States » SouthPosted at: Sep 5 2025 2:16PM


GST cut on ICE-EV 3 wheelers, commercial segments not to be impacted but 2 wheelers might take a hit

By Venkatachari Jagannathan
Chennai, Sept 5 (UNI) Mixed views were expressed by electric vehicle (EV) makers on the impact of the reduction in Goods and Services Tax (GST) on petrol/diesel-powered vehicles on EVs. The GST reduction has narrowed the price gap between internal combustion engine (ICE) and electric vehicles.
While the GST rate for EVs has been retained at 5 per cent, the rates for ICE vehicles, two, three, and four wheelers, and commercial vehicles, have been cut, ranging from 7 percent to 13 per cent, depending on the class of vehicle. However, there is one exception to the rate reduction/retention: two-wheelers with a cubic capacity of 350cc and above have seen their GST increased by 9 per cent to 40 per cent.
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Tags: #GST cut on ICE-EV 3 wheelers# commercial segments not to be impacted but 2 wheelers might take a hit
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