1. Dr. Krishna Kumar Verma

Professor, Department of Commerce,

H. N. B. Garhwal Central University, Campus Tehri, Uttarakhand.

2. Dr. Jyoti Singh

Assistant Professor, Department of Commerce & Management,

Ramanand Institute of Pharmacy & Management, Haridwar, Uttarakhand.

Date of Publication (ONLINE) :-28-04-2026
Online Publication Certificate No. :- IJCBM/2207
DOI :-10.71037/ijcbm.v2i2.07

cite this article:
Verma Dr. Krishna Kumar/Singh Dr. Jyoti, “GST REFORM 2.0 AND ITS IMPACT ON VEHICLE USERS (An Empirical Study)” IJCBM, Vol-2, Issue-2, JApril-June-2026, Page No. :-72-77. URL : https://ijcbm.gyanvividha.com/wp-content/uploads/2026/07/Dr.-Krishna-Kumar-Verma-Dr.-Jyoti-Singh-IJCBM-vol-2-issue-2-April-June-2026-pp-72-77.pdf

Abstract : This study focuses on the GST Reform 2.0 and its impact on the automobile industry. As we know, GST reform 2.0 is effective from 22 September 2025. These reforms have significantly reduced automobile taxation by simplifying tax rates and abolishing the compensation cess. Tax rates may be expected to be lower, which will direct benefit to consumers. Primary and secondary data were collected for the study. Secondary data were taken from government reports, websites, journals, and articles. Primary data for the study were collected from vehicle users planning to purchase vehicles for personal use. Simple Random sampling is used to select sample households and collect data from 200 respondents in Haridwar city, Uttarakhand. Consumer Buying Index is prepared.  According to the reforms of GST, the GST rate on Bikes up to 350cc, Small petrol cars (≤1200cc), Small diesel cars (≤1500cc) is reduced from 28% to 18%, but there was no change (5% remained) on Electric Vehicles like Electric scooters, electric bikes, electric cars. It is found from the primary data that 65 per cent of respondents were aware of the GST reform 2.0, in which 59 per cent of respondents belong to urban areas and 6 per cent from rural areas. The study found that about 93.42 per cent of urban respondents and 85.42 per cent of rural respondents were satisfied with the GST 2.0 reform. Further, it has been noted that 79% of respondents were satisfied with the elimination of the compensation cess and the reduction in tax rates. The study concludes that reducing GST on two-wheelers is significantly beneficial to rural consumers, who can easily buy vehicles for personal use.

Keywords : GST, Automobiles, Consumer Buying Index, Two-wheeler, Four-wheeler.

Publication Details:

Journal : Indian Journal of Commerce, Business & Management (IJCBM)

ISSN : 3108-057X (Online)

3108-1282 (Print)

Published In : Volume-2 | Issue-2, April-June-2026

Page Number(s) : 72-77

Publisher Name :

Mrs Anubha Chaudhary | https://ijcbm.gyanvividha.com | E-ISSN 3108-057X | P-ISSN 3108-1282