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Hybrid Vehicles in Trouble; To Attract GST Rate of 43%
May 25, 2017
As the new GST taxation system continues to disrupt the commercial sector of the country, a recent change in the policy regarding vehicle electrification has thrown a wrench into the plans of auto companies Honda, Hyundai Motor, Maruti Suzuki, and others through stringent regulations concerning automobile emissions and fuel efficiency, etc.
As per the GST regime hybrid vehicles will attract a GST rate of 43% which is comprised of 28% tax and 15% cess. However, GST rate of mere 12% has been reserved for pure electric vehicles in order to promote greener means of transportation and reduce the carbon footprint.
