It's been quite some time ever since the new tax system - Goods and Services Tax, replaced the existing one. Though claimed to be brought into being to simplify the previous tax structure, the same has made it much more difficult for some to even understand how much tax they are liable for. Nevertheless, things have stabilized for now and people are getting a hang of GST.


Besides, there are Goods and Services Tax calculators available on the internet which can be used to calculate the exact amount one has to pay as tax. So, if you ever need to find out what is GST on your product or how much GST you’re liable to pay maybe while buying a car for example, you need two things:-

  1. The GST percentage applied on car purchase. For instance, different products - tangible and intangible products - are categorized into different slabs as per the Goods and Services Tax payable on them.
  2. An accurate GST calculator.

Talking about buying cars and GST, the benefits associated with Goods and Services Tax on automobiles are listed below:

  • GST has enabled hassle-free automobile purchase along with a fixed rate across the nation. Buyers planning to purchase small cars such as Alto, Santro, Nano etc. will particularly benefit from the lowering of tax obligations through Goods and Services Tax.

  • GST has reduced the cost of manufacturing cars. This is mainly due to the subsuming of the earlier applicable taxes on raw materials, and has eliminated the problem of tax on taxes (also known as cascading effect) and has brought uniformity regarding the tax paid.

GST (Goods and Services Tax) has simplified automobile purchase through e-commerce by ending the confusion and hassles of various taxes to be paid.


Also read this Related article: Know all the GST Rate Slabs in India

Anyone who wants to apply for GST must also know the online registration process. Anyone who wants to know How do I register for the GST online? May read this answer.