New Delhi, Aug. 31 -- India's automobile market has been sputtering for a while, and the weakness has carried into 2025, with both two-wheeler and passenger vehicle recording muted growth until July. Now, relief may be around the corner: a proposed overhaul of goods and services tax (GST) could deliver the sector its biggest tax relief since the indirect tax regime was introduced in 2017.

Currently, automobiles falls under the steepest 28% GST slab, with additional cesses pushing the total burden far higher. Buyers of large cars with engines over 1500cc and lengths above four metres can end up paying around 50% in taxes, according to Nomura.







Industry experts say the proposed GST revamp-shifting most goods from the 28% bracket to t...