A Study on revised GST in reference to car buyers

The Indian automobile industry is experiencing rapid development, driven by government initiatives and a growing economy. The automobile industry contributes significantly to India’s GDP, accounting for around 7.1 percent of the nation’s gross domestic product. The automotive mission plan aims to place the Indian automotive sector among the top three in the world for production, engineering, and exportation of automobiles and components. The industry is projected to contribute significantly to India’s GDP over the next decade. The 56th GST council meeting introduced significant changes to the Goods and Services Tax (GST) structure for cars in India, effective September 22, 2025. The current study stated that the awareness and impact of GST rate changes are expected to boost demand in the small car and commercial vehicle segments, while maintaining high taxation on luxury consumption. It also highlights the perceived value of consumers in term of preference of the following features as product quality, price, brand image, utility customer perceived value that has influenced the purchasing decisions of the consumers.