Banks face car loan cancellations in run up to Sep 22 GST rate cut-off date
Business 14 Sep, 2025

Banks face car loan cancellations in run up to Sep 22 GST rate cut-off date

Business To Business, New Delhi, 14 September 2025: Banks are currently receiving numerous requests for the cancellation of approved automobile loans, in light of the recent implementation of a reduced GST rate, which is expected to decrease the cost of passenger vehicles and subsequently lower the amount required for their purchase.
 
It is noteworthy that during the 56th GST Council meeting earlier this month, a significant reduction in the GST rate for cars with engine capacities up to 1,200 cc was approved, lowering it from the previous 28 percent to 18 percent.
 
As a result of this revision, nearly 400 products—ranging from soaps and shampoos to tractors, air conditioners, and automobiles—will become more affordable starting from the first day of Navaratri, September 22.

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