GST 2.0 New Change 2025: Government of India on 3 August 2025 GST Making historical changes in it GST 2.0 Is named. The decision was taken after the announcement of Prime Minister Narendra Modi and the 56th GST Council meeting. Tax slabs of 12% and 28% have been abolished. Now 5% and 18% tax slabs will remain in the country. With this improvement, the general public will directly benefit from many essential commodities and vehicles.
Under GST 2.0, the government has reduced the tax rate on several vehicles from 28% to 18%. This will directly affect those vehicles running from petrol, LPG and CNG, whose engine capacity is up to 1200cc and length is less than 4 meters.
These include:
Now consumers will be able to buy these trains at a cheaper price.
The government has also reduced tax on diesel vehicles. The vehicles whose engine capacity is up to 1500cc and less than 4 meters in length will now also apply 18% GST. Apart from this, the ambulances coming directly from the factory have also been brought to this slab. Also, petrol and diesel -powered hybrid cars are now under low tax.
Electric and hydrogen vehicles first used to take 12% GST, which has now been reduced to just 5%. This change will give a new pace to the EV sector in the country.
Now motorcycles with engine up to 350cc and their parts will be replaced by only 18% GST instead of 28%. However, bikes with a capacity of more than 350cc are placed in the premium category and will be directly placed on them 40% GST.
GST 2.0 can prove to be a major gift for common people. Due to cheap vehicles, motorcycles, electric vehicles, tractors and essential items, not only will consumers get relief, but will also bring new life in the automobile and agricultural sector.