GST Rationalisation Boosts Road Transport and Auto Sector

The GST Council has approved a significant reduction in GST rates for the road transport and automobile sector, lowering rates for two-wheelers, cars, tractors, and buses. This reform aims to make vehicles more affordable, enhance logistics efficiency, stimulate demand, and support MSMEs, ultimately promoting cleaner mobility and job creation across urban and rural markets. Effective from September 22, 2025, the changes are expected to strengthen India's manufacturing competitiveness and support national initiatives like Make in India.

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