India Considers Major GST Cuts on Small Cars and Insurance Premiums
August 18th, 2025
The Indian government is considering significant reductions in the Goods and Services Tax (GST) on small cars and insurance premiums, a move aimed at boosting consumer spending and providing relief to households.
According to government proposals, the GST on small cars could be reduced from the current 28% to 18%, potentially lowering the overall cost of compact vehicles for buyers.
In addition, the government has proposed a substantial cut in GST on health and life insurance premiums, bringing the rate down from 18% to a maximum of 5%.