Big GST Relief for Small Cars: India’s latest GST rationalisation has brought major relief to small car buyers. The tax rate has been slashed to 18% for petrol and hybrid models under 1,200cc and 4,000mm, as well as diesel and hybrid models under 1,500cc and 4,000mm. In sharp contrast, bigger SUVs, luxury cars, and motorcycles above 350cc will now attract a much higher 40% GST, making small cars the biggest beneficiaries of this change.