In today’s article, we are going to talk about the tax levied on the hybrid cars and all the information related to it. As awareness about the environment is increasing among the people, the demand for the hybrid cars is also increasing.
Hybrid cars do not harm the environment and help in reducing fuel consumption, which also saves money in the long run. So let’s know about the tax levied on these cars.
GST on Hybrid Cars
A significant part of the Goods and the Services Tax (GST) applies to the hybrid cars in India. The GST rate on hybrid cars is higher than on the vehicles running on petrol and diesel.
Currently, 28% GST is levied on the hybrid cars, which is quite high. Along with this, cess is also added, which is levied according to the engine capacity and the other features of the car.
Tax Rate and Cess
Not only the GST but also the cess is levied on the hybrid cars. If the engine of the car has a capacity of more than 1500cc, then a cess of 15% to 22% can also apply to it.
This makes it clear that the tax rates on the hybrid cars are higher than on normal cars. The purpose of the cess is to reduce the environmental impact caused by the cars on behalf of the government.
Apart from this, hybrid vehicles can also be made 100% tax-free, which will make it very easy for the people to buy these vehicles.
Discount on hybrid cars
Some state governments provide tax exemptions on hybrid cars. For example, in states like Delhi and Maharashtra, road tax exemptions can be given on purchasing a hybrid car.
This discount is mainly given to those who want to use pollution-reducing cars. Also, you can save up to Rs 4 lakh on buying tax-free vehicles.