The Indian government stands out worldwide for road security and maintenance. Nationwide imposed road taxes amortize the cost of road building and maintenance throughout India — every highway in the country, whether state or national, is subject to taxation. India’s road taxation system is diversified and split into several types of road taxes, mainly depending on the state. Our article offers a practical panorama of India’s most important road taxes.
The Goods and Services Tax
The Goods and Services Tax (GST) is one of the most noteworthy on vehicles. It’s diversified according to the car’s type of fuel, car model and classification, and usage. While the average GST rate on small cars is 20%, it reaches 50% on luxury cars. However, the GST is helping lower the taxation on automotive purchases in India.
Due to the GST, the Indian automotive sector received a breath of fresh air, with a significant increase in vehicle purchases. Also, the recent GST implementation has helped to decrease manufacturing costs, which benefits national car manufacturers.
The GST includes a provision for car assistance, especially on used cars. This provision reduces the maintenance and repair costs for used vehicles. Car door lock repairs, reprogramming of transponder car keys, removal of the key from a broken or jammed ignition, extraction of car key, carlock picking, and installation of car security systems are among the most common car assistance services. Such car services aren’t frequent only in India. They are the world’s most requested assistance services, with a significant peak demand in the US, where vehicle owners can contact the nearest 24 hour locksmith for car directly at https://www.locksmithslocator.com/car-locksmiths, one of the largest car locksmith companies in North America.
The Toll Tax
Another nationwide road tax that all vehicle drivers pay in India is the toll tax. It’s a mandatory tax charged in toll plazas and highways in the country, except for VIP people (President of India, PM, Vice President, Chief Justice, State Governors, etc). The toll tax rate varies depending on the mileage traveled by the vehicle’s driver. Also, the toll tax rates undergo yearly revision and differ on location.
India has over 400 tax collection fee plazas placed along highways. According to the current policy, all roads with a minimum of four lanes running are subject to toll taxation, including highways that are not fully completed.
The Road Tax
Road taxes are mandatory in India for all vehicle owners, regardless of the type or model of vehicle. The road tax payment procedure is also available on the state’s website. Clicking the “Vehicle Related Services” section opens a menu with the “Name of the State” options. After selecting the state, the system requests that the “Vehicle Registration No” be entered.
Vehicle owners can pay road taxes online by credit card and debit card. These documents are to be submitted, as well: a copy of the invoice of the vehicle, the registration certificate, the no-objection certificate, a valid insurance copy, a form number KMVT14 for vehicles from different states, and a proof of address with passport, voter ID, ration card, rental agreement, and a few more documents.
Vehicles can’t drive in another state for over 30 days unless the owners pay the road tax. In case of failing to pay the road tax, vehicle owners will have to pay lifetime road tax added with penalty.